Setting Sights on China: US Stocks On Edge as Trade Talks Loom Large
Crucial Conversations in Switzerland: A New Focus for Investors
Persisting doubt: American stock markets experiencing economic downturn
After securing a trade deal with the UK, attention now turns towards China as the next point of interest for investors. Trust in a swift resolution, however, seems scarce. The Wall Street closed slightly in the red.
With weekend talks between the US and China on the horizon regarding the trade dispute, the Wall Street remained relatively stagnant. The Dow Jones Industrials closed 0.3% lower at 41,249 points, while the broader S&P 500 fell 0.1% to 5,651 points. The tech-focused Nasdaq remained flat at 17,928 points.
Representatives from the world's two biggest economies are set to meet in Switzerland to discuss tariffs. Investors hope that these negotiations will put an end to the trade war that has cast doubt on global economic growth. On Friday, US President Donald Trump suggested reduced tariffs for Chinese imports, but analysts remain unconvinced. As Michael Matousek, senior trader at US Global Investors, put it, "Regardless of whether tariffs are 140% or 80%, most people won't buy goods."
The US and UK reached an agreement the previous day – the first of its kind since Trump imposed his initial tariffs last month. However, many aspects are still up in the air, and a base tariff for imports into the US remains in effect.
Gold and Oil Rise as Markets Tense
The increasing gold price reflects the ongoing tension in the markets. "These persistent uncertainties surrounding tariffs continue to significantly influence the gold price," said David Meger, head of metals trading at High Ridge Futures. A troy ounce of the safe-haven precious metal rose 0.7% to $3,327. The oil market also saw an uptick, with North Sea Brent and US WTI crude each gaining approximately 1.7% to $63.88 and $60.99 per barrel (159 liters), respectively.
According to Vandana Hari, founder of Vanda Insights, if both sides agree to progressively reduce high tariffs during negotiations, the oil price could rise by an additional $2-$3 per barrel.
Mixed Fortunes for Stocks
Disappointing quarterly results sent Expedia plummeting by 7.3%. The online travel platform's first-quarter revenue fell short of analysts' expectations, narrowly missing the mark at $2.98 billion. On the contrary, Lyft enjoyed a surge in investor confidence after reporting strong first-quarter performance. The ride-hailing company's shares skyrocketed by 28%, with adjusted earnings per share coming in at 24 cents – beating analysts' expectations of 19 cents. Trade Desk saw its shares soar by 18.6% after reporting first-quarter revenue and earnings exceeding Wall Street estimates.
For more on today's market activity, click here.
Source: ntv.de, ino/rts
- Stock Prices
- Stock Trading
- Dow Jones
- Wall Street
- EC countries might need to reevaluate their employment policies in light of the trade disputes and economic uncertainties arising from the ongoing trade talks between the US and China.
- The average return on stocks like the S&P 500 and the Nasdaq might experience volatility if a resolution to the US-China trade war significantly impacts global finance.
- A resolution to the US-China trade war, if it includes a reduction in tariffs, could potentially impact the average price of stocks across various sectors, including oil and gold.
