Wall Street’s rally slows as more CEOs talk about uncertainty because of Trump’s trade war
Wall Street’s rally slows as more CEOs talk about uncertainty because of Trump’s trade war
NEW YORK (AP) — Wall Street’s three-day rally is running out of momentum Friday, and U.S. stocks are drifting in mixed trading as they near the end of another roller-coaster week.
The S&P 500 was 0.2% higher in early trading, though the majority of stocks within it were falling. The Dow Jones Industrial Average was down 10 points, or less than 0.1% , as of 9:40 a.m. Eastern time, and the Nasdaq composite was 0.3% higher.
Intel weighed on the market after the chip company said it’s seeing “elevated uncertainty across the industry” and gave a forecast for upcoming revenue and profit that fell short of analysts’ expectations. Its stock fell 7.6% even though its results for the beginning of the year topped expectations.
Eastman Chemical fell 4.3% after it gave a forecast for profit this spring that fell short of analysts’ expectations. CEO Mark Costa said that the “macroeconomic uncertainty that defined the last several years has only increased” and that future demand for its products “is unclear given the magnitude and scope of tariffs.”
They’re the latest companies to say the uncertainty created by President Donald Trump’s trade war is making it difficult to give financial forecasts for the upcoming year.
Stocks had rallied earlier in the week on signals that Trump may be softening his approach on tariffs and his criticism of the Federal Reserve, which had earlier shaken markets. The hope is that if Trump can roll back some of his stiff tariffs, he could avert a recession that many investors see as otherwise likely.
But Trump’s on-again-off-again tariffs may nevertheless be pushing households and businesses to freeze plans on spending and long-term investment because of how quickly conditions can change, sometimes seemingly by the hour.
Skechers U.S.A., the shoe and apparel company, pulled its financial forecasts for the year due to “macroeconomic uncertainty stemming from global trade policies,” for example. That was even though it just reported a record quarter of revenue at $2.41 billion. Its stock fell 3.4%.
Helping to keep Wall Street’s losses in check was Alphabet, which rose 3.1%. Google’s parent company reported late Thursday that its profit soared 50% in the first quarter.
Alphabet is one of the biggest U.S. companies on Wall Street in terms of size, and that gives movements for its stock extra heft on the S&P 500 and other indexes. It was the strongest single force pushing upward on the S&P 500 and the main reason the index was holding steady.
In stock markets abroad, indexes rose modestly across much of Europe following more mixed movements in Asia. Tokyo’s Nikkei 225 jumped 1.9%, but stocks in Shanghai slipped 0.1%.
In the bond market, Treasury yields were easing ahead of a report on sentiment among U.S. consumers. The yield on the 10-year Treasury fell to 4.28% from 4.32% late Thursday. It’s been easing since approaching 4.50% earlier this month in a surprising rise that had suggested investors worldwide may be losing faith in the U.S. bond market’s reputation as a safe place to park cash.
The U.S. dollar also strengthened against the euro and other rival currencies after its unexpected dip earlier this month rattled investors.
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AP Writers Jiang Junzhe and Matt Ott contributed.
By STAN CHOE
AP Business Writer
