Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
(NEW YORK) — U.S. stocks dropped slightly lower early Thursday, after a reprieve for the S&P and Nasdaq a day earlier amid President Donald Trump’s trade war.
The Dow Jones Industrial Average fell 150 points in early trading, or 0.4%, while the S&P 500 ticked down 0.25%. The tech-heavy Nasdaq declined 0.35%.
Trading opened minutes after Trump threatened a 200% tariff on champagne and other alcohol products from the European Union, escalating a global trade war that has roiled markets.
A continued back-and-forth over international tariffs is hanging over the U.S. economy, along with a looming government shutdown with a deadline on Friday.
Federal officials said Wednesday that consumer prices climbed 2.8% in February over the same year-earlier month, meaning inflation cooled more than economists expected.
After initially modest gains, the Dow Jones Industrial Average closed on Wednesday down about 0.2%, while the S&P 500 climbed 0.5%. The tech-heavy Nasdaq increased 1.2%.
This is a developing story. Please check back for updates.
(WASHINGTON) — President Donald Trump on Thursday threatened a 200% tariff on champagne and other alcohol products from the European Union, escalating a global trade war that has roiled markets and stoked recession fears.
The move came a day after the EU announced plans to slap tariffs on $28 billion worth of U.S. goods, including a 50% tariff on whiskey. Those tariffs marked a response to U.S. duties on steel and aluminum imports.
Trump called on the EU to drop its tariff on whiskey, saying the U.S would otherwise “shortly place” a tariff on alcohol products from the EU.
Trump sharply criticized the EU, describing the organization as “one of the most hostile and abusive taxing and tariffing authorities in the World.”
In a statement a day earlier, Ursula von der Leyen, president of the European Commission, said that the EU “must act to protect consumers and business.”
Stock futures turned lower early Thursday morning, erasing some gains in the S&P 500 and tech-heavy Nasdaq a day earlier. The Dow Jones Industrial Average futures showed a continuation of losses incurred on Wednesday.
Markets have plunged since Trump last week announced 25% tariffs on imports from Mexico and Canada, some of which he soon delayed.
The tariff threats on Thursday mark the latest skirmish in a global trade war. In response to U.S. duties on steel and aluminum, Canada announced retaliatory tariffs applied to $20.7 billion in U.S. goods, government officials said. The U.S. imports more steel and aluminum from Canada than from any other country.
The Trump administration last week slapped a 10% tariff on China, doubling taxes on Chinese imports to 20%. In response, China imposed retaliatory duties on U.S. agricultural goods, deepening a trade war between the world’s two largest economies.
The trade tensions triggered recession fears on Wall Street. Goldman Sachs last week hiked its odds of a recession from 15% to 20%. Moody’s Analytics raised its gauge of the probability of a recession to 35%.
This is a developing story. Please check back for updates.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City.
(NEW YORK) — Stocks futures were again showing jitters early Thursday, after a reprieve for the S&P and NASDAQ on Wednesday amid President Donald Trump’s trade war.
A back-and-forth over international tariffs is hanging over the U.S. economy, along with a looming government shutdown with a deadline on Friday.
Dow futures evened out ahead of Thursday’s open, after earlier trading down about 0.3%.
Federal officials said Wednesday that consumer prices climbed 2.8% in February over the same year-earlier month, meaning inflation cooled more than economists expected.
After initially modest gains, the Dow Jones Industrial Average closed on Wednesday down about 0.2%, while the S&P 500 climbed 0.5%. The tech-heavy Nasdaq ticked increased 1.2%.
Markets may look on Thursday to a smaller inflation report called the Produce Price Index, which is expected at 8:30 a.m. ET, along with weekly jobless claims, for an indication of the health of the larger economy.
Still, its news out of Washington that is likely to have the biggest impact on the direction of stocks.
This is a developing story. Please check back for updates.
(NEW YORK) — Consumer prices rose 2.8% in February compared to a year ago, easing slightly over the first full month under President Donald Trump and offering welcome news for markets roiled by a global trade war. Inflation cooled more than economists expected.
The major stock indexes climbed in early trading on Wednesday, minutes after the inflation report was released, but markets soon teetered amid an escalating trade war and recession concerns.
Speaking at the White House later in the morning, Trump touted the inflation report as “very good news.”
Price increases slowed from a 3% inflation rate recorded in January, though inflation remain nearly a percentage point higher than the Federal Reserve’s target of 2%.
Egg prices, however, a closely watched symbol of price increases, soared 58.8% in February compared to a year ago, accelerating from the previous month. Bird flu has decimated the egg supply, lifting prices higher.
The Justice Department opened an investigation into egg producers to learn if market practices have contributed to the price hikes, a source familiar with the matter told ABC News.
Prices dropped for tomatoes, cereal, cupcakes and cookies over the past year. Some grocery prices increased faster than the pace of overall inflation, however, including beef, biscuits and apples.
A rise in housing costs accounted for nearly half of the price increases last month, the U.S. Bureau of Labor Statistics said. A decline in the price of airline tickets and gasoline helped offset some of the increased costs, the agency said.
The inflation report arrived hours after the U.S. imposed 25% tariffs on steel and aluminum, prompting near-immediate retaliatory duties from the European Union and marking the latest escalation of trade tensions.
Tariffs are widely expected to raise prices for consumers, since importers typically pass along a share of the added cost to shoppers.
The stock market has plunged since Trump imposed tariffs on Mexico, Canada and China last week, giving rise to warnings on Wall Street about a potential economic downturn. Within days, Trump delayed some of the tariffs on Canada and Mexico.
The report on Wednesday may soften pressure on the Federal Reserve, which bears responsibility for keeping inflation under control.
Federal Reserve Chair Jerome Powell last week said the administration’s tariff plan would likely raise prices for U.S. shoppers and retailers.
The scale and duration of the tariffs remain unclear, but a portion of the taxes on imports will probably reach consumers, Powell told an economic forum in New York City last week.
“We’re at a stage where we’re still very uncertain about what will be tariffed, for how long, at what level,” Powell said. “But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and to some extent consumers.”
On multiple occasions in recent days, the White House declined to rule out a possible recession, saying the tariffs would require a “period of transition.”
A solid, albeit disappointing jobs report on Friday exacerbated concerns among some observers.
Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.
The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.
A day later, Trump issued a one-month delay for tariffs on auto-related goods from Mexico and Canada. The carve-out expanded soon afterward with an additional one-month pause for goods from Mexico and Canada compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.
On Tuesday, Trump announced plans to add another 25% tariff on Canadian steel and aluminum, bringing the total to 50%. The move came in response to threats made by Ontario to cut off electricity to parts of the U.S., Trump said.
Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.
The tariffs slapped on Canada, Mexico and China are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.
A key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said in February.
The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.
ABC News’ Katherine Faulders and Soo Youn contributed to this report.
(NEW YORK) — U.S. stocks teetered in early trading on Wednesday, posting shaky performance amid an escalating global trade war and concerns about a possible recession.
After some initial modest gains, the Dow Jones Industrial Average fell 330 points, or 0.8%, while the S&P 500 dropped 0.25%. The tech-heavy Nasdaq ticked up 0.25%.
Trading opened minutes after a fresh inflation report showed price increases had eased more than expected in February, the first full month under President Donald Trump.
Tit-for-tat tariffs continued to rattle global trade early Wednesday, however.
Trump’s 25% tariffs on all imported steel and aluminum products went into effect overnight. In response, Canada and the European Union slapped retaliatory duties on U.S. goods.
Tesla, the electric carmaker run by Elon Musk, soared about 6% in early trading on Wednesday. The gains came a day after Trump touted the company alongside Musk in an event at the White House.
Some economists say that while the U.S. tariffs could boost the local steel industry in the United States, they could also lead to higher prices for industries that purchase steel. Those higher prices may eventually reach consumers.
The U.S. relies heavily on imported aluminum and those costs are expected go up as well.
This is a developing story. Please check back for updates.
(NEW YORK) — Consumer prices rose 2.8% in February compared to a year ago, easing slightly over the first full month under President Donald Trump and offering welcome news for markets roiled by a global trade war. Inflation cooled more than economists expected.
Price increases slowed from a 3% inflation rate recorded in January, though inflation remain nearly a percentage point higher than the Federal Reserve’s target of 2%.
Egg prices, a closely watched symbol of price increases, soared 58.8% in February compared to a year ago, accelerating from the previous month. Bird flu has decimated the egg supply, lifting prices higher.
The Justice Department opened an investigation into egg producers to learn if market practices have contributed to the price hikes, a source familiar with the matter told ABC News.
Prices dropped for tomatoes, cereal, cupcakes and cookies over the past year. Some grocery prices increased faster than the pace of overall inflation, however, including beef, biscuits and apples.
A rise in housing costs accounted for nearly half of the price increases last month, the U.S. Bureau of Labor Statistics said. A decline in the price of airline tickets and gasoline helped offset some of the increased costs, the agency said.
The inflation report arrived hours after the U.S. imposed 25% tariffs on steel and aluminum, prompting near-immediate retaliatory duties from the European Union and marking the latest escalation of trade tensions.
Tariffs are widely expected to raise prices for consumers, since importers typically pass along a share of the added cost to shoppers.
The stock market has plunged since Trump imposed tariffs on Mexico, Canada and China last week, giving rise to warnings on Wall Street about a potential economic downturn. Within days, Trump delayed some of the tariffs on Canada and Mexico.
The report on Wednesday may soften pressure on the Federal Reserve, which bears responsibility for keeping inflation under control.
Federal Reserve Chair Jerome Powell last week said the administration’s tariff plan would likely raise prices for U.S. shoppers and retailers.
The scale and duration of the tariffs remain unclear, but a portion of the taxes on imports will probably reach consumers, Powell told an economic forum in New York City last week.
“We’re at a stage where we’re still very uncertain about what will be tariffed, for how long, at what level,” Powell said. “But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and to some extent consumers.”
On multiple occasions in recent days, the White House declined to rule out a possible recession, saying the tariffs would require a “period of transition.”
A solid, albeit disappointing jobs report on Friday exacerbated concerns among some observers.
Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.
The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.
A day later, Trump issued a one-month delay for tariffs on auto-related goods from Mexico and Canada. The carve-out expanded soon afterward with an additional one-month pause for goods from Mexico and Canada compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.
On Tuesday, Trump announced plans to add another 25% tariff on Canadian steel and aluminum, bringing the total to 50%. The move came in response to threats made by Ontario to cut off electricity to parts of the U.S., Trump said.
Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.
The tariffs slapped on Canada, Mexico and China are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.
A key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said in February.
The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.
ABC News’ Katherine Faulders and Soo Youn contributed to this report.
(NEW YORK) — Stocks futures traded slightly higher early Wednesday, following another volatile day for the market amid the continued rollout of President Donald Trump’s tariffs on goods from top U.S. trading partners.
Dow futures were higher by 189 points or 0.46%. Both the Nasdaq and S&P 500 also appeared ready to open narrowly higher on Wednesday.
Traders are expected to be looking to Wednesday’s inflation report for clues on the health of the economy amid Trump’s escalting trade war. Expectations are that inflation will be up 2.9% compared to a year ago. A worse-than-expected report could add to negative stock sentiment.
Trump’s 25% tariffs on all imported steel and aluminum products came into effect overnight. The European Commission said EU member states would retaliate with duties on U.S. goods, sending European markets mostly higher.
Some economists say that while the tariffs could boost the local steel industry in the United States, they could also lead to higher prices for industries that purchase steel. Those higher prices may eventually reach consumers.
The U.S. relies heavily on imported aluminum and those costs are expected go up as well.
This is a developing story. Please check back for updates.
(WASHINGTON) — An inflation report to be released on Wednesday will provide a fresh gauge of economic performance under President Donald Trump as markets slide and recession fears swell in response to an escalating trade war.
Economists expect the data to show that inflation eased in February.
Consumer prices are expected to have risen 2.9% over the year ending in February, which would amount to a slight slowdown from a 3% rate recorded in January.
Analysts and households alike will closely watch for movement in egg prices, which soared 53% in January compared to a year ago. Bird flu has decimated the egg supply, lifting prices higher.
The Trump administration has started investigating egg producers to learn if market practices have contributed to the price hikes, a source familiar with the matter told ABC News.
Inflation has fallen dramatically since a peak of about 9% in 2022, but a recent acceleration of price increases has placed inflation a percentage point higher than the Federal Reserve’s target rate of 2%.
If the report reveals a cooldown in February, that could soften pressure on the Federal Reserve, which bears responsibility for keeping inflation under control.
Federal Reserve Chair Jerome Powell last week said the administration’s tariff plan would likely raise prices for U.S. shoppers and retailers
The scale and duration of the tariffs remain unclear, but a portion of the taxes on imports will probably reach consumers, Powell told an economic forum in New York City last week.
“We’re at a stage where we’re still very uncertain about what will be tariffed, for how long, at what level,” Powell said. “But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and to some extent consumers.”
The stock market has plunged since Trump imposed tariffs on Mexico, Canada and China last week, giving rise to warnings on Wall Street about a potential economic downturn. Within days, Trump delayed some of the tariffs on Canada and Mexico.
On multiple occasions in recent days, the White House declined to rule out a possible recession, saying the tariffs would require a “period of transition.”
A solid, albeit disappointing jobs report on Friday exacerbated concerns among some observers.
Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.
The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.
A day later, Trump issued a one-month delay for tariffs on auto-related goods from Mexico and Canada. The carve-out expanded soon afterward with an additional one-month pause for goods from Mexico and Canada compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.
On Tuesday, Trump announced plans to add another 25% tariff on Canadian steel and aluminum, bringing the total to 50%. The move came in response to threats made by Ontario to cut off electricity to parts of the U.S., Trump said.
Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.
The tariffs slapped on Canada, Mexico and China are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.
A key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said in February.
The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.
ABC News’ Katherine Faulders and Soo Youn contributed to this report.
Li Hongbo / Feature China/Future Publishing via Getty Images
(WASHINGTON) — U.S. tariffs on imported steel and aluminum are now in effect, part of an escalating series of trade maneuvers by President Donald Trump that have unsettled markets.
As of Wednesday, the U.S. is imposing 25% tariffs on all steel and aluminum imports from all trading partners with no exceptions or exemptions, according to an earlier statement by the White House.
Products that are expected to be impacted include canned goods, vehicles and washing machines.
Baseball bats, sewing needles and lamps could also go up in price.
While the tariff is being slapped on imports from all countries, the U.S. imports more steel and aluminum from Canada than any other country.
The 25% tariffs go into effect just a day after Trump threatened to double the tariff specifically on Canada amid an intensifying tit-for-tat between the two countries over Trump’s tariff policies.
Earlier this week, Ontario Premier Doug Ford threatened to impose a 25% surcharge on electricity from the province sent to U.S. customers in response to earlier U.S. tariffs on Canadian goods.
That led to a threat from Trump to up the tariffs on Canadian steel and aluminum imports to 50%.
Trump later reversed course after an agreement was reached and Ford pulled back his threat to impose the electricity surcharge.
“After President Trump threatened to use his executive powers to retaliate with a colossal 50 percent tariff against Canada, Ontario Premier Doug Ford spoke with Secretary Lutnick to convey that he is backing down on implementing a 25 percent charge on electricity exports to the United States,” White House spokesman Kush Desai said in a statement.
Ford will travel to Washington, D.C., for a meeting with U.S. Commerce Secretary Howard Lutnick on trade.
ABC News’ Zunaira Zaki contributed to this report.
(NEW YORK) — The major U.S. airlines thought they were going to have a strong first quarter, but things are not going as well as expected.
Each of the major U.S. airlines has put out guidance pointing to significant economic uncertainty that is directly affecting their domestic bookings this spring.
For its part, Delta was sure this would be a strong first quarter, but this morning the airline’s CEO admitted they were wrong.
Speaking out Tuesday during the J.P. Morgan industrials conference in New York, Southwest, United and American all echoed the same message.
The reasons: Two major plane incidents — including the deadly midair collision between an American Airlines regional jet and U.S. Army Black Hawk helicopter over Washington, D.C. — the uncertain economic future, plummeting government travel and reductions to corporate travel.
Overall, bookings fell after the deadly Jan. 29 D.C. crash, rebounded a bit, and then fell again after the Feb. 17 crash in Toronto, in which a regional jet crashed upon landing, overturned and caught fire.
“It caused a lot of shock amongst consumers. There’s a whole generation of consumers that didn’t realize these things can happen,” Delta CEO Ed Bastian said during the J.P. Morgan conference on Tuesday.
Consumer confidence is unsettled and companies are waiting to see how things shake out. While companies wait, they are booking fewer seats.
Delta expects revenue to be down $500 million — or 4% less than it anticipated this quarter.
Airlines say they will cut capacity — reducing the number of seats they are flying — in order to stabilize the market.
American Airlines has taken a significant hit at the D.C.’s Ronald Reagan National Airport from both the January crash and reductions in government travel.
The airline is reducing capacity there to limit the losses.
United says government travel is down 50%.
One bright spot: Airlines say despite the domestic bookings being weak, international travel remains strong — and airlines believe this summer will still be strong.
