US stocks paused on Thursday as investors took heart from trade talks between the US, Japan, and Italy, despite Federal Reserve Chair Jerome Powell’s cautious tone about cutting interest rates. The dollar ticked up while gold pulled back from a record high.
The S&P 500 index rose 0.1%, while the Nasdaq Composite fell 0.1%. Technology shares got a boost from forecast-busting earnings from Taiwan’s TSMC and Eli Lilly. However, Alphabet’s shares fell after a federal judge ruled that Google illegally dominated two markets for online advertising technology.
The Dow Jones Industrial Average fell 1.3%, dragged down by UnitedHealth’s surprise quarterly earnings miss. US President Donald Trump joined talks in Washington with a delegation from Japan, saying “big progress” had been made. The European Central Bank cut rates by 25 basis points as expected, citing trade uncertainty.
The dollar edged higher, while Treasury yields rose. Oil prices settled around 3% higher on Thursday, supported by hopes for a trade deal between the US and EU. Gold fell 0.73% to $3,319 per ounce, but remains near its record high.
Despite market volatility, central banks are in focus after Fed Chair Powell’s comments about cutting interest rates. The IMF warned that rising trade tensions will trigger downward revisions of its economic forecasts, but no global recession is expected.
Source: https://www.reuters.com/markets/global-markets-wrapup-1-2025-04-17