Stocks showed mixed performance on Thursday as investors grappled with the unpredictable stance of the Trump administration on tariffs and Federal Reserve leadership. This week, U.S. President Donald Trump criticized Fed Chair Jerome Powell but later retracted calls for his resignation. Uncertainty persisted regarding the state of tariffs on China despite numerous headlines.
The administration is reportedly considering lowering tariffs on Chinese goods, contingent on negotiations with Beijing. Treasury Secretary Scott Bessent clarified that any reduction would not be unilateral. Analysts noted the administration’s inconsistent approach, emphasizing the volatility it introduces into markets.
U.S. futures stabilized slightly, with Nasdaq and S&P 500 futures up about 0.2% each. The dollar weakened slightly after a rebound earlier in the week, following relief over Trump’s decision not to remove Powell. The yen strengthened against the dollar, while longer-dated Treasuries steadied.
Cleveland Fed President Beth Hammack highlighted ongoing uncertainty in the economic outlook, advocating for a cautious approach to monetary policy. Markets are pricing in over 80 basis points of rate cuts by December. Oil prices steadied after a decline, with OPEC+ considering accelerating output increases in June. Gold advanced toward record highs.
— new from Reuters