New York – Wall Street showed signs of fatigue on Friday, with U.S. stocks trading in a mixed pattern as the week draws to a close. The S&P 500 dipped slightly, with majority of stocks within the index experiencing declines. The Dow Jones Industrial Average also saw a 0.6% drop, while the Nasdaq composite managed to edge 0.3% higher due to gains in select Big Tech stocks.
Intel’s announcement of heightened uncertainty across the industry led to a 6.8% drop in its stock, despite meeting expectations for the beginning of the year. Eastman Chemical also faced a 5.9% decline after falling short of profit forecasts for the spring. These companies, alongside Skechers U.S.A., highlighted concerns about financial projections amidst global trade policy uncertainty stemming from President Donald Trump’s trade war.
Trump’s recent decisions regarding tariffs and the Federal Reserve have kept investors on edge, with hopes that a potential rollback on tariffs could prevent a recession. However, the unpredictable nature of Trump’s trade policies continues to impact business decisions and consumer spending. The ongoing trade war presents challenges for businesses, particularly smaller ones, that lack the resources to quickly adjust to changing conditions.
Despite these uncertainties, Alphabet’s strong performance helped offset losses on Wall Street, with its stock rising by 2.2%. The bond market also saw fluctuations, with Treasury yields easing and the U.S. dollar strengthening against rival currencies. Reports indicating weaker-than-expected economic data have raised expectations for a potential interest rate cut by the Federal Reserve to support growth later this year.
In global markets, European indexes saw modest gains, while Asian markets experienced mixed movements. The ripple effects of Trump’s trade policies and market uncertainties continue to impact economies worldwide, creating a sense of instability among investors. The shifting landscape of global trade and economic policies further exacerbates concerns about future financial forecasts, emphasizing the need for clarity and stability in the market.