US Stocks Struggle Amidst Earnings Season and Trade Tariff Uncertainty
Key Market Indicators
* Dow Jones Industrial Average (^DJI): -0.2%
* S&P 500 (^GSPC): -0.04%
* Nasdaq Composite (^IXIC): -0.11%
Market Sentiment
U.S. stocks encountered headwinds on Friday, halting the recent rally as investors digested a mixed bag of earnings reports and weighed President Donald Trump's softened stance on China tariffs. Despite the dip, major market indices are poised to end the week with gains exceeding 2%.
Earnings and Economic Data
Boeing (BA) shares remained stable after the company announced a projected quarterly loss of $3.5 billion due to strikes and layoffs. Novo Nordisk (NVO) experienced a surge in stock value following favorable results from its latest weight-loss drug. Preliminary data revealed a seven-month high in U.S. manufacturing activity, signaling economic growth ahead of the Federal Reserve's policy meeting.
Trump's Influence on Markets
President Trump's comments on trade tariffs continue to influence market sentiment. His expression of preference against imposing tariffs on China has eased concerns about a potential trade war, with Chinese stocks responding positively. However, Wall Street remains skeptical about Trump's ability to implement his policies effectively.
Other Market Highlights
* Oil prices declined, tracking the recent volatility in crude prices driven by Trump's position and OPEC's response.
* Gold ($GC=F) surged towards a record high as the dollar ($DX-Y.NYB) retreated.
* The dollar weakened as Trump's softening tariff stance removed some of the pressure on the currency.
* Existing home sales jumped to their strongest pace since February 2024, despite high mortgage rates and home prices.