US stocks closed higher on Thursday, driven by relief that President Donald Trump has decided not to impose reciprocal tariffs on a range of countries. The S&P 500 index rose 1.04%, while the Dow and Nasdaq also gained ground. The news helped ease concerns about the impact of trade tensions on the economy and inflation.
Trump’s decision means federal agencies will be asked to study how to implement tariffs, rather than imposing them immediately. This has provided a boost to investors, who had been worried about the potential effects of a trade war on growth and prices.
However, worries about inflation remain, with two reports showing higher-than-expected price increases in recent days. This has led economists to pare back their expectations for future interest rate cuts by the Federal Reserve.
In corporate news, some companies saw significant gains and losses. Reddit shares fell 5.32% after missing estimates, while Arm Holdings rallied over 6% on plans to launch a new chip this year. Conversely, Hansabrand and West Pharmaceutical Services reported disappointing results, with their shares plummeting 18.5% and 38.22%, respectively.
Bitcoin prices also took a hit despite some positive news from the cryptocurrency world. Robinhood reported strong quarterly performance, driven by crypto revenues, while Fed Chair Jerome Powell signaled that the central bank will not hinder crypto banking development. Coinbase is set to report earnings later Thursday.
Source: https://eu.usatoday.com/story/money/markets/2025/02/13/stock-market-inflation-trump-reciprocal-tariffs/78512012007