NEW YORK: Wall Street stocks followed the example of their European counterparts by posting modest losses on Thursday as mixed economic data and simmering tensions between the U.S. and Iran kept uncertainties – and crude prices – high.
The U.S. goods trade balance hit its widest on record, while a bigger-than-expected drop in initial jobless claims provided some reassurance regarding the health of the labor market.
Today’s Key Market Moves
* STOCKS: U.S. shares slip as Nvidia drops and private equity stocks sink.
* SECTORS/SHARES: Financials and tech are down most among the 11 major S&P sectors, while utilities and energy lead the gainers. Elsewhere, aerospace/defense shares outperform the broader market, while travel-related airlines and hotels/restaurants/cruise lines post steep declines.
* FX: The dollar advances as data implies economic stability
* BONDS: U.S. Treasury yields are mixed as investors assess probable Fed policy, and the Treasury sells $9 billion in inflation-linked 30-year debt.
* COMMODITIES/METALS: Gold advances as traders weigh geopolitical strife against solid economic data.
Today’s Key Reads
1. European Central Bank President Christine Lagarde tells colleagues she remains focused on her job, hinting that she has no plans to leave her post early, contrary to Wednesday’s report by the Financial Times.
2. China sees an opening to turn U.S. President Donald Trump’s tariffs to its own advantage by reshaping global trade, and insulate its economy from U.S. pressure well into the future.
3. Sources say Netflix has ample room to increase its offer in the battle over Warner Bros.
4. A South Korean court has sentenced former President Yoon Suk Yeol to life in prison after finding him guilty of masterminding an insurrection related to his attempt to impose martial law in December 2024.
Today’s Talking Points
* U.S. trade deficit balloons on surging imports
December’s goods trade shortfall is the widest ever recorded, despite Trump’s tariffs levied against the U.S. trading partners.
* Trump presses Iran to make “meaningful deal”
Warning that “bad things” will happen if Iran fails to reach a deal over its nuclear program, Trump appeared to set a 10-day deadline before the United States takes action.
* Fed’s Kashkari calls recent comments from White House economic advisor Hassett an attack on Fed independence
Minneapolis Fed President Neel Kashkari said Kevin Hassett’s call for New York Fed officials to “be disciplined” for recent research on tariffs represented the Trump administration’s latest move to undermine the central bank’s independence.
* The “Board of Peace” convenes for its first meeting
Trump announced that various nations had contributed $7 billion to a Gaza reconstruction fund that aims to rebuild the enclave once Hamas disarms.
What could move markets tomorrow?
* United States Personal Consumption Expenditures (December)
* United States Advance Q4 GDP
* United States Flash PMI (February)
* United States Consumer Sentiment (February)
* United States new home sales (December)
* Canada Producer Prices (January)
* Canada retail sales (December)
* UK retail sales (January)
* UK flash PMI (February)
* Germany Producer Prices (January)
* France Flash PMI (February)
* India Flash PMI (February)
* U.S. Federal Reserve Bank of Atlanta President Raphael Bostic due to participate in economic outlook discussion
* The U.S. Supreme Court could rule on the legality of Trump’s tariffs Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
(By Stephen Culp; Editing by Nia Williams)
