US stocks rise as Trump signals tariff negotiations
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(NEW YORK) — U.S. stocks rose on Tuesday in a burst of investor optimism as the Trump administration signaled plans to negotiate with some countries targeted by sweeping new tariffs.
The Dow Jones Industrial Average jumped 1,385 points, or 3.6%, while the tech-heavy Nasdaq increased 3.7%. The S&P 500 was up 3.3%.
The move followed an upswing in markets worldwide.
Asian markets opened in positive territory after posting significant losses on Monday driven by President Donald Trump’s global tariffs campaign,
Japan’s Nikkei index closed just over 6% up on Tuesday, recovering some of almost 8% of losses posted on Monday.
South Korea’s KOSPI index rose by 0.3%, Australia’s S&P/ASX 200 grew by 2.2% and India’s NIFTY 50 index climbed almost 2%.
Hong Kong’s Hang Seng index — which on Monday posted its worst day since 1997 losing 13% — rebounded with a 1% rise on Tuesday. Shanghai’s Composite Index grew 1.4%.
European markets also edged into the green after a tumultuous start to the week. The British FTSE 100 picked up 1.3% shortly after opening, Germany’s DAX gained 0.9% and France’s CAC 40 rose 1.3%.
Monday’s rollercoaster trading saw the Dow post its largest intraday point swing ever — falling more than 1,700 points during its Monday session low, then swinging up 2,595 points from the low.
The Dow dropped 349 points, or 0.91%, while the tech-heavy Nasdaq ticked up 0.1%. The S&P 500 closed down 0.23%. Its 8.5% high/low spread has only happened 20 other times since 1962, according to S&P Global.
The S&P 500 briefly entered bear market territory during the session but was last off nearly 18% from its recent high.
ABC News’ Max Zahn and Joe Simonetti contributed to this report.
(NEW YORK) –U.S. stocks seesawed on Wednesday, swinging between gains and losses amid fears of a global trade war as China and the European Union slapped retaliatory tariffs on U.S. goods.
The Dow Jones Industrial Average fell 60 points, or 0.7%, while the S&P 500 dropped 0.6%,
The tech-heavy Nasdaq jumped 0.2%.
Meanwhile, a selloff hit U.S. Treasury markets on Wednesday, sending bond yields higher and raising concern about a typical safe-haven asset during moments of instability for stocks.
President Donald Trump’s latest batch of levies on China increased the cumulative rate of tariffs on Chinese goods to 104% — a move met with retaliatory tariffs in Beijing that raised tariffs on U.S. goods to 84%.
European Union countries on Wednesday backed the European Commission’s proposal to push back on Trump’s tariffs on steel and aluminum with a set of countermeasures.
The latest U.S. tariffs came into force with key Asian markets already open. In Japan, the Nikkei index dropped more than 5% in response, while the broader TOPIX index slipped 4.6%. The Nikkei closed down 3.93% and the TOPIX down 3.4%.
Stocks in Taiwan fell more than 5.7%, Singapore’s STI index slipped 2.4%, South Korea’s KOSPI index lost 1.8%, Australia’s S&P/ASX 200 lost 1.8% and India’s NIFTY 50 dropped 0.4%.
In China, Hong Kong’s Hang Sen index slipped 0.4%. Shanghai’s SSE Shanghai Composite Index — which has fewer international investors and is buoyed by the state-owned investors known as the “National Team” — posted gains of 1.1% despite the new tariffs. Shenzhen’s SE Composite rose 2.2%.
In Europe, key indices dropped on opening.
The British FTSE 100 dropped by 2.2%, Germany’s Dax index dropped 2.3%, France’s CAC 40 fell by 2.4% and Spain’s Ibex index was down 2%. The pan-European STOXX index was down 2.6%.
United States stocks closed lower on Tuesday, marking a major reversal from a rally that sent the S&P 500 and Nasdaq up more than 4% earlier in the day.
The Dow Jones Industrial Average closed down 320 points, or 0.8%, while the Nasdaq dropped 2.1%.
The S&P 500 fell 1.5%, putting the index on the brink of a bear market, a term that indicates a 20% drop from a previous peak.
The move lower on Tuesday resumed a selloff that stretches back to Trump’s tariff announcement last week. Since then, the S&P 500 and Nasdaq have each fallen more than 12%.
(WASHINGTON) — The Federal Reserve held interest rates steady on Wednesday, just weeks after President Donald Trump intensified calls for lower borrowing costs and voiced eagerness about the potential “termination” of Fed Chair Jerome Powell.
In recent days, Trump has dialed back his attacks on Powell, saying he will not fire Powell before the end of the top central banker’s term next year. Trump has reiterated his displeasure with the level of interest rates, however, urging the central bank to lower them.
The move marked the Fed’s second consecutive decision to maintain the current level of interest rates, repeating an approach taken in January. Before that, the Fed had cut rates at three consecutive meetings.
The Federal Open Market Committee (FOMC), a policymaking body at the Fed, said Wednesday that key economic indicators had improved but it cautioned of heightened economic uncertainty.
“Risks of higher unemployment and higher inflation have risen,” the FOMC said in a statement.
Last month, Powell raised the possibility that Trump’s tariffs may cause what economists call “stagflation,” which is when inflation rises and the economy slows.
If the Fed raises interest rates as a means of protecting against tariff-induced inflation under such a scenario, it risks stifling borrowing and slowing the economy further. On the other hand, if the Fed lowers rates to stimulate the economy in the face of a potential slowdown, it threatens to boost spending and worsen inflation.
Still, Powell pointed to solid economic performance as a reason to take a patient approach as policymakers await the impact of tariffs.
“For the time being, we are well-positioned to wait for greater clarity,” Powell told an audience at the Economic Club of Chicago.
Powell noted the possibility of a shift in economic conditions, saying, “Life moves pretty fast.”
The rate decision arrives days after fresh data showed robust job growth in April.
Despite flagging consumer sentiment and market turmoil, the labor market has provided a bright spot since Trump took office. Meanwhile, inflation cooled in March, the most recent month for which data is available.
Even so, recession fears are mounting on Wall Street as Trump’s tariffs threaten to upend global trade. Goldman Sachs earlier this month hiked its odds of a recession from 35% to 45%. JPMorgan pegged the probability of a recession this year at 60%.
A government report last week showed the U.S. economy shrank over the first three months of 2025, much of which took place as Trump’s flurry of tariff proposals stoked uncertainty among businesses and consumers.
U.S. gross domestic product, or GDP, declined at a 0.3% annualized rate over three months ending in March, according to government data released on Wednesday. The figure marked a sharp dropoff from 2.4% annualized growth over the final three months of 2024.
The rate decision on Wednesday also marks the first adjustment of borrowing costs since Trump’s closely watched “Liberation Day” tariff announcement on April 2, which triggered the biggest single-day stock market drop since the COVID-19 pandemic.
Days later, Trump suspended a major swathe of the tariffs, sending the market to one of its largest ever single-day increases. A simultaneous escalation of tariffs on Chinese goods kept the effective tariff rate at its highest level in more than a century, the Yale Budget Lab found.
The White House is seeking to strike trade agreements with dozens of U.S. trade partners before the 90-day suspension of so-called “reciprocal tariffs” expires in July.
“As we gain a better understanding of the policy changes, we will have a better sense of the implications for the economy,” Powell said last month.
(NEW YORK) — Macy’s slashed its full-year profit forecast on Wednesday, attributing the downbeat expectations in part to tariffs imposed by President Donald Trump.
The New York-based retail chain is the latest major company to warn of ill effects from the levies, including Target, Walmart and Nike.
Macy’s downgraded its expectations for adjusted earnings per share from a range of $2.05 to $2.25, instead saying the metric is likely to register between $1.60 to $2.00.
In addition to tariffs, Macy’s faulted flagging consumer spending and heightened competition.
The earnings release arrives more than a year after the company embarked on a three-year plan to improve its balance sheet by closing its low-performing stores and optimizing its e-commerce service.
The nationwide retailer said last year that it plans to close about 150 stores by 2027.
Macy’s brought in $4.6 billion in revenue over a recent three-month period, exceeding the company’s expectations, according to the earnings release.
“We continued to execute against our Bold New Chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger than expected performance across all three of our nameplates,” CEO Tony Spring said in a statement on Wednesday.
The tariff escalation in recent weeks poses a challenge for Macy’s, however.
Trump earlier this month slapped 30% tariffs on China, a key source of apparel imports for the retail chain. The levies mark a deescalation from a previous 145% levy on China, but the tariffs remain well above levels prior to Trump’s second term.
Roughly 20% of Macy’s merchandise originates in China, Spring told CNBC.
The tariffs helped propel a monthslong stretch of souring consumer sentiment, which also threatens the bottom line of sellers like Macy’s.
However, a Conference Board survey released on Tuesday showed a brightening of consumer attitudes in May, suggesting that consumer appetites had rebounded as Trump rolled back some tariffs.
