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Los Angeles Times
2 hours ago
- Business
- Los Angeles Times
Wall Street rises again as US stocks pull closer to their records
NEW YORK — U.S. stocks pulled closer to their record on Tuesday as the wait continued for more updates on President Donald Trump's tariffs and how much they're affecting the economy. The S&P 500 rose 0.6%, coming off a modest gain that added to its stellar May. It's back within 2.8% of its all-time high set earlier this year after falling roughly 20% below two months ago. The Dow Jones Industrial Average added 214 points, or 0.5%, and the Nasdaq composite climbed 0.8%. Dollar General jumped 15.8% for one of the market's bigger gains after reporting stronger profit and revenue for the start of the year than analysts expected. The discount retailer also raised its forecasts for profit and revenue over the full year, though it cautioned that 'uncertainty exists for the remainder of the year' because of tariffs and how they might affect its customers. Many other companies have cut or withdrawn their financial forecasts for the upcoming year because of the uncertainty caused by Trump's on-again-off-again rollout of tariffs. The Organization for Economic Cooperation and Development said on Tuesday that it's forecasting 1.6% growth for the U.S. economy this year, down from 2.8% last year. But while Trump's tariffs have certainly made U.S. households feel more pessimistic about where the economy and inflation are heading, reports have suggested only a moderate hit so far. Manufacturers have begun to feel the effects, but the overall job market has remained solid overall with layoffs remaining relatively low, and inflation has not taken off. A report on Tuesday morning showed U.S. employers were advertising more job openings at the end of April than economists expected, another signal that the labor market remains resilient. It set the stage for a more important report coming on Friday, which will show how much hiring and firing U.S. employers did in May. On the trade front, hopes are still high on Wall Street that Trump will reach trade deals with other countries that will ultimately lower tariffs, particularly with the world's second-largest economy. The U.S. side said President Donald Trump was expecting to speak with Chinese leader Xi Jinping this week. A Chinese foreign ministry spokesperson said Tuesday that they had no information on that. All the hope has brought the U.S. stock market almost all the way back to its record heights nearly as quickly as it plunged in April. 'This calm won't last indefinitely, but it will take unexpected policy news or growth and inflation data to inflect the narrative and push the markets outside these ranges,' according to Jason Draho, head of asset allocation, Americas at UBS Global Wealth Management. On Wall Street, tech stocks helped lead the way again as Nvidia rose 2.9%, and Broadcom climbed 3.3%. The chip companies have recovered their sharp losses from earlier this year borne amid worries their stock prices had shot too high. All told, the S&P 500 rose 34.43 points to 5,970.37. The Dow Jones Industrial Average added 214.16 to 42,519.64, and the Nasdaq composite gained 156.34 to 19,398.96. In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury edged down to 4.45% from 4.46% late Monday, though it had been lower earlier in the morning before the stronger-than-expected report on U.S. jobs openings. It's a cooldown following a sharp rise for yields over the last two months. Yields had been climbing in part on worries about how the U.S. government may be set to add trillions of dollars to its debt through tax cuts. Besides making it more expensive for U.S. households and businesses to borrow money, higher Treasury yields can also discourage investors from paying high prices for stocks and other investments. In stock markets abroad, indexes rose modestly across much of Europe and Asia. Hong Kong was an outlier, where the Hang Seng jumped 1.5%. That came despite a report showing Chinese manufacturing activity slowed in May. South Korean markets were closed for a snap presidential election that resulted in a victory for opposition leader Lee Jae-myung. The election was triggered by the ouster of Yoon Suk Yeol, a conservative who now faces an explosive trial on rebellion charges over his short-lived imposition of martial law in December. Choe writes for the Associated Press.
Time of India
21 hours ago
- Business
- Time of India
Asian stocks mixed as tech-led Wall Street rebound offsets tariff anxieties
Asian equities opened on a cautious note Tuesday, as a rebound in US tech stocks offered modest optimism while investors continued to watch ongoing trade war developments and geopolitical risks. A regional index fluctuated between small gains and losses, and US equity-index futures dipped 0.2% after the S&P 500 rose 0.4% on Monday—buoyed by technology shares at the beginning of what is typically a subdued month for markets. Meanwhile, bonds held steady in early Asia trading, and the dollar remained flat after touching its lowest level since 2023 in the previous session. Oil extended its gains, while gold remained steady following its largest daily jump in four weeks. Investor focus has shifted to trade headlines after the US on Monday extended Section 301 tariff exclusions on some Chinese imports until August 31. The Trump administration has asked countries to submit their 'best offer' on trade talks by Wednesday, Reuters reported. Efforts are also underway to arrange a call between Donald Trump and Chinese President Xi Jinping amid renewed accusations from both sides of breaching a prior trade truce. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo 'We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data,' said Ulrike Hoffmann-Burchardi of UBS Global Wealth Management. 'Fiscal worries remain, and geopolitical tensions are heating up.' Although Trump has pushed for direct talks with Xi, the Chinese president has so far preferred negotiations via advisors. Their last known conversation occurred in January, before Trump's inauguration. White House economic adviser Kevin Hassett suggested on Sunday that a call could happen this week. Separately, Japan's chief trade envoy Ryosei Akazawa may return to the US this week for another round of negotiations, as hopes rise for a potential trade deal this month. 'The markets keep shrugging off simmering trade war risks,' said Kyle Rodda, senior market analyst at 'While it has slipped down the list of priorities for market participants, below trade policy, fiscal policy and macroeconomic data, a very solid set of quarterly results from mega cap tech is enticing investors into the market.' Japan's domestic focus on Tuesday will be on a fresh round of government bond auctions. The finance ministry is set to sell ¥2.6 trillion ($18 billion) in 10-year notes, following weak demand at auctions last month that raised concerns over public borrowing plans. On Monday, Asian equities tumbled after US President Donald Trump escalated trade tensions by doubling tariffs on steel and aluminium to 50%, accusing China of violating a recent trade truce. 'China has totally violated the agreement,' Trump said, referring to a 90-day pause agreed last month. US Commerce Secretary Howard Lutnick also accused China of 'slow-rolling' negotiations. China dismissed the claims as 'seriously contrary to the facts' and criticised Washington's 'bogus charges.' The renewed tension revived fears of a full-blown trade war, overshadowing positive inflation data from the US. Markets across Hong Kong, Tokyo, Sydney, Singapore, Taipei, Manila and Jakarta registered declines. Hong Kong's losses surpassed 2%, led by property stocks amid concerns over New World Development's delayed bond payments and a broader credit crunch in China's real estate sector. Oil surged after OPEC's modest production increase disappointed markets, while escalating Ukraine-Russia hostilities added to the anxiety. The US dollar weakened amid fears about fiscal sustainability as Trump pushed for extended tax cuts and welfare reforms. Moody's downgraded the US's last top-tier credit rating, citing ballooning deficits. JPMorgan CEO Jamie Dimon cautioned that the US bond market could be heading for a crisis. 'The bond market is going to have a tough time. I don't know if it's six months or six years,' he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
a day ago
- Business
- Time of India
Asian stocks start cautious, dollar holds drop
In geopolitics, Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war, but laid the groundwork for a new exchange of prisoners. Asian shares began cautiously following a tech-driven rally in US stocks, while bonds remained steady. Investors are closely monitoring trade war developments, including extended tariff exclusions and potential US-China talks. Japan faces debt market pressures, and Russia-Ukraine talks concluded without a resolution, setting the stage for a prisoner exchange. Market volatility is expected amid trade tensions and geopolitical concerns. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Asian shares were off to a tepid start at the open Tuesday after a rebound in big tech drove US stocks higher.A regional stock index swung between small gains and losses while equity-index futures for the US dipped 0.2%. Bonds were steady in early Asian trading and the dollar was little changed after hitting its lowest since 2023 in the last session. Technology shares helped lift the S&P 500 0.4% at the start of what's historically one of its quietest months for extended gains early Tuesday, while gold was steady after clocking its biggest daily gain in four are keeping a close eye on the latest twists in the trade war after a slew of headlines Monday. The US extended the exclusion of Section 301 tariffs on some Chinese goods until Aug. 31. President Donald Trump's administration wants countries to provide their 'best offer' on trade negotiations by Wednesday, Reuters reported. The US is pushing for a call between Trump and Xi Jinping after the two countries accused each other of violating a trade agreement reached last month.'We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data ,' said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. 'Fiscal worries remain, and geopolitical tensions are heating up.'Trump has long said that direct talks with Xi were the only way to resolve differences between the nations, but the Chinese leader has been reluctant to get on the phone with his American counterpart — preferring that advisers negotiate key issues. The last known conversation between Trump and Xi took place in January before the US president's Trump economic adviser Kevin Hassett signaled Sunday the White House was anticipating a call this week with the Chinese Japan's top trade negotiator Ryosei Akazawa is considering returning to the US for another round of trade negotiations this week as expectations mount for a deal as early as this month.'The markets keep shrugging off simmering trade war risks,' Kyle Rodda, a senior market analyst at 'While it has slipped down the list of priorities for market participants, below trade policy, fiscal policy and macroeconomic data, a very solid set of quarterly results from mega cap tech is enticing investors into the market.'In Japan, attention will once again shift to a debt market sale Tuesday that may ramp up pressure on the government to adjust its borrowing plans and calm investor on the heels of auctions last month that exposed a lack of demand, the finance ministry will sell ¥2.6 trillion ($18 billion) of 10-year geopolitics, Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war, but laid the groundwork for a new exchange of prisoners.
Economic Times
a day ago
- Business
- Economic Times
Asian stocks start cautious, dollar holds drop
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Asian shares were off to a tepid start at the open Tuesday after a rebound in big tech drove US stocks higher.A regional stock index swung between small gains and losses while equity-index futures for the US dipped 0.2%. Bonds were steady in early Asian trading and the dollar was little changed after hitting its lowest since 2023 in the last session. Technology shares helped lift the S&P 500 0.4% at the start of what's historically one of its quietest months for extended gains early Tuesday, while gold was steady after clocking its biggest daily gain in four are keeping a close eye on the latest twists in the trade war after a slew of headlines Monday. The US extended the exclusion of Section 301 tariffs on some Chinese goods until Aug. 31. President Donald Trump's administration wants countries to provide their 'best offer' on trade negotiations by Wednesday, Reuters reported. The US is pushing for a call between Trump and Xi Jinping after the two countries accused each other of violating a trade agreement reached last month.'We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data ,' said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. 'Fiscal worries remain, and geopolitical tensions are heating up.'Trump has long said that direct talks with Xi were the only way to resolve differences between the nations, but the Chinese leader has been reluctant to get on the phone with his American counterpart — preferring that advisers negotiate key issues. The last known conversation between Trump and Xi took place in January before the US president's Trump economic adviser Kevin Hassett signaled Sunday the White House was anticipating a call this week with the Chinese Japan's top trade negotiator Ryosei Akazawa is considering returning to the US for another round of trade negotiations this week as expectations mount for a deal as early as this month.'The markets keep shrugging off simmering trade war risks,' Kyle Rodda, a senior market analyst at 'While it has slipped down the list of priorities for market participants, below trade policy, fiscal policy and macroeconomic data, a very solid set of quarterly results from mega cap tech is enticing investors into the market.'In Japan, attention will once again shift to a debt market sale Tuesday that may ramp up pressure on the government to adjust its borrowing plans and calm investor on the heels of auctions last month that exposed a lack of demand, the finance ministry will sell ¥2.6 trillion ($18 billion) of 10-year geopolitics, Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war, but laid the groundwork for a new exchange of prisoners.
Los Angeles Times
5 days ago
- Business
- Los Angeles Times
A global rally for stocks loses steam amid questions about what will happen to Trump's tariffs
NEW YORK — A big rally for stocks that began in Asia on Thursday lost steam after sweeping into Europe and the United States amid uncertainty about what will happen next after a U.S. court blocked many of President Trump's sweeping tariffs. The Standard & Poor's 500 rose 0.4% after giving up more than half of an early gain. The Dow Jones Industrial Average added 117 points, or 0.3%, and the Nasdaq composite rose 0.4%. It's a downshift after stocks initially leaped nearly 2% in Tokyo and Seoul, where markets had the first chance to react to the ruling late Wednesday by the U.S. Court of International Trade. The court said that the 1977 International Emergency Economic Powers Act that Trump cited for ordering massive increases in taxes on imports from around the world does not authorize the use of tariffs. The ruling at first raised hopes in financial markets that a hamstrung Trump would not be able to drive the economy into a recession with his tariffs, which had threatened to grind down on global trade and raise prices for consumers already sick of high inflation. Trump has said he wants to bring manufacturing jobs back to the United States, and he warned the process could cause some pain for U.S. households. But the tariffs remain in place for now while the White House appeals the ruling, and the ultimate outcome is still uncertain. The court's ruling also affects only some of Trump's tariffs, not those on foreign steel, aluminum and autos, which were invoked under a different law. Trump 'is still able to impose significant and wide-ranging tariffs over the longer-term through other means,' according to Ulrike Hoffmann-Burchardi, chief investment officer of global equities at UBS Global Wealth Management. Such uncertainty helped dampen the excitement in financial markets as trading headed through Europe into the United States, where the moves were much more modest than in Asia. The U.S. court's move was nevertheless seen as a positive for financial markets. 'The bar is raised for President Trump to resurrect his tariffs,' said Brian Jacobsen, chief economist at Annex Wealth Management. 'Markets are pricing that this is a better type of uncertainty than what we've had since Liberation Day,' which is what Trump called his April 2 announcement of a worldwide set of sweeping tariffs. The S&P 500 has pulled within 3.8% of its all-time high after dropping roughly 20% below at one point last month. On Wall Street, tech stocks led the way after Nvidia once again topped analysts' expectations for profit and revenue in the latest quarter. The chip company has grown into one of the U.S. market's largest and most influential stocks because of the frenzy around artificial-intelligence technology, and its 3.2% rise was the strongest force by far lifting the S&P 500. an AI application software company, jumped 20.8% after it reported stronger profit than analysts expected for its latest quarter. It also said the U.S. Air Force increased the maximum possible value for its contract by $350 million to $450 million. The company's revenue last quarter totaled $108.7 million. E.l.f. Beauty was another big winner and rose 23.6% after the cosmetics company delivered a stronger profit for the latest quarter than analysts expected. It also said it agreed to buy Hailey Bieber's Rhode skincare brand in a $1 billion deal. Rhode had $212 million in net sales in the 12 months through March. Bieber, a model and the wife of singer Justin Bieber, will be Rhode's chief creative officer and head of innovation and also a strategic advisor to the combined companies. They helped offset a drop for Best Buy, which fell 7.3% even though it reported a stronger profit than expected. Its revenue fell short of analysts' forecasts. The electronics retailer also cut its forecasted ranges for revenue and profit over the full year on the assumption that 'tariffs stay at the current levels for the rest of the year, and there is no material change in consumer behavior from the trends we have seen in recent quarters,' Chief Financial Officer Matt Bilunas said. Many companies have recently said that the uncertainty caused by tariffs is making it too difficult to offer any financial forecasts for the upcoming year. All told, the S&P 500 rose 23.62 points to 5,912.17. The Dow Jones Industrial Average added 117.03 to 42,215.73, and the Nasdaq composite gained 74.93 to 19,175.87. In the bond market, Treasury yields eased following some mixed reports on the economy. One said that the U.S. economy likely shrunk by less in the first three months of the year than earlier estimated. Another said slightly more U.S. workers applied for unemployment benefits last week than economists expected. The yield on the 10-year Treasury fell to 4.43% from 4.47% late Wednesday. In stock markets abroad, Japan's Nikkei 225 jumped 1.9% to help lead Asian markets higher, while stocks rose 1.4% in Hong Kong and 0.7% in Shanghai. South Korea's Kospi rallied 1.9% after the Bank of Korea cut its key interest rate to ease pressure on the economy. The moves for European stocks were much more muted. France's CAC 40 and Germany's DAX both swung from early gains to modest losses. Choe writes for the Associated Press.
