The investors at Wall Street treaded with caution on Thursday, expecting President Donald Trump to make fresh announcements about the imposition of high tariffs on more countries and sectors.
The Dow Jones Industrial Average slipped 43 points, or 0.1%, while the S&P 500 traded mostly unchanged. The Nasdaq Composite edged up by 0.2%.
The major US stock indexes ended the last session in positive territory, reflecting continued optimism among investors. As broader economic trends unfold, many are now watching closely to see if this upward momentum has staying power.
US trade talks remain in focus, especially following the recent tariff letters to 21 nations.
While more countries are expecting higher tariffs, the investors are now assessing what it could mean for global trade dynamics and company profits.
Meanwhile, uncertainty around the White House’s position on upcoming tariff plans is keeping futures markets on edge.
Earning season ahead
With the upcoming release of corporate earnings, analysts are once again divided on whether companies can manage to post better than the expected results.
While the previous quarters have not been very forgiving due to inflation and tariff-laden burdens, there is a sense of tempered hope emerging.
Most experts are of the opinion that firms have had a fair amount of time to adapt, whether through restructuring operations, diversifying supply chains, or cost-shifting to consumers.
In the case that these strategies have worked, we may be witnessing a set of unusually positive results.
Consequently, this could provide a new market boost and further strengthen the rising equity markets.
Fed’s next move?
The latest release of the Federal Reserve’s meeting minutes has injected fresh uncertainty among investors.
While there’s general consensus among policymakers that a rate cut sometime this year may be warranted, the finer details, when and by how much, remain hotly debated.
Some officials appear ready to consider a cut as early as the July 29–30 meeting, pointing to signs of cooling in parts of the economy.
Others, however, remain cautious, citing lingering inflationary pressures, partly fueled by President Trump’s newly imposed tariffs as a reason to keep rates steady for now.
The lack of a clear path forward is keeping investors on edge as they try to gauge what the Fed’s next move might be.
What happened in pre-market trading?
Delta shares jumped 11% in premarket trading after the airline reaffirmed its profit forecast for 2025, boosting investor confidence across the travel sector.
The company topped estimates for the second quarter, but trimmed its full-year profit forecast.
Delta now anticipates adjusted earnings between $5.25 and $6.25 per share for 2025, down from its earlier projection in January of over $7.35 a share.
MP Materials shares soared almost 40% following news of a significant partnership with the US Department of Defense.
The surge came after the company revealed a deal aimed at revitalizing the domestic rare earth magnet supply chain—a key move toward reducing reliance on foreign imports.
The initiative is supported by $750 million in private investment and a $150 million loan from the Pentagon, with the funds going toward the development of a state-of-the-art magnet manufacturing plant in the US, dubbed the “10X Facility.”
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