US markets closed lower on Friday, with chip stocks taking a hit due to concerns over fresh US regulation on China. The Dow Jones Industrial Average rose 35 points, while the S&P 500 index fell 0.3%, and the NASDAQ Composite slipped 0.5%.
The move is not a new trade escalation, but rather an attempt to mirror China’s licensing system for rare-earth materials. This development has led to a decline in chip stocks, including Nvidia and Broadcom.
Despite this, Federal Reserve Governor Chris Waller said that the central bank should consider cutting interest rates at its next meeting given recent tame inflation data. Waller stated that “any tariff inflation… I don’t think is going to be that big and we should just look through it in terms of setting policy.”
Markets were also assessing a wave of central bank decisions over the course of the week, including announcements from the Bank of England, Norges Bank, and Swiss National Bank. The economic outlook remains murky due to President Donald Trump’s often erratic trade agenda.
In corporate news, Apple is scouting Indian companies to manufacture equipment for its flagship iPhone devices in India. Meanwhile, Accenture stock fell after its fiscal third-quarter bookings missed expectations, while CarMax surged higher after reporting strong first-quarter earnings.
Investors should also be aware of the ongoing Israel-Iran conflict and its impact on oil prices, as well as Trump’s decision to decide on direct US involvement within the next two weeks.
Source: https://www.investing.com/news/stock-market-news/us-stock-futures-fall-as-israeliran-uncertainty-persists-fed-rate-outlook-weighs-4103175