Mixed Performance on Wall Street Amid Trade War Uncertainty

Thursday witnessed a mixed session for Wall Street’s primary indexes. The S&P 500 and Nasdaq Composite edged higher as investors digested a series of varied corporate earnings reports and closely watched the evolving U.S.-China trade situation.

Earlier in the week, the White House signaled a potential willingness to ease broad tariffs imposed on China. Furthermore, President Donald Trump softened his criticism of Federal Reserve Chairman Jerome Powell, initially boosting stock market confidence.

However, this optimism waned following Treasury Secretary Scott Bessent’s statement that tariff reductions would not be a unilateral action. China responded by asserting that the U.S. must completely remove all unilateral tariff measures against China to demonstrate a genuine commitment to resolving trade disputes.

The constant stream of conflicting headlines and the resulting market ambiguity are making it challenging for investors to accurately assess the implications of the Trump administration’s shifting trade policy, thereby fostering a climate of instability.

Matt Gertken, chief strategist at BCA Research, commented that tariffs continue to significantly influence market sentiment, and the Trump administration’s stance oscillates between full implementation and partial retreat. He added that the administration’s adjustments signal a strategy aimed at implementing tariffs without triggering a recession, suggesting a fluctuating trade war dynamic.

As of 09:37 a.m. ET, the Dow Jones Industrial Average decreased by 160.28 points, reflecting a 0.40% drop to reach 39,446.29. Conversely, the S&P 500 saw an increase of 5.59 points, or 0.10%, climbing to 5,381.45. The Nasdaq Composite experienced a gain of 68.60 points, equivalent to 0.41%, to stand at 16,776.65.

Significant megacap and growth stocks provided support to the technology-heavy Nasdaq, offsetting declines observed in the benchmark S&P 500, with the tech sector leading the advances.

International Business Machines experienced a sharp decline of 8.2% following the company’s announcement that 15 government contracts were suspended as part of a cost-reduction initiative by the Trump administration. Similarly, Proctor & Gamble decreased by 3.7% after revising its annual profit projections downward.

These declines exerted downward pressure on the blue-chip Dow.

However, economic data offered some reassurance. Reports indicated a slight increase in weekly jobless claims and a more substantial-than-anticipated surge in orders for durable goods during March.

Heightened trade tensions, concerns regarding a potential economic deceleration in the U.S., and anxieties regarding the independence of the central bank have prompted investors to reduce their holdings of U.S. equities.

Year-to-date, all three major indexes are in negative territory, with the S&P 500 down by over 12% from its record high in February. Deutsche Bank recently lowered its year-end target for the benchmark index from 7,000 to 6,150.

Alaska Airlines shares plunged by 10.6% after the company retracted its financial outlook. In contrast, Southwest Airlines reversed premarket losses to achieve a gain of 2.4%.

Software firm ServiceNow, conversely, surged by 13.2% after surpassing first-quarter profit expectations.

Alphabet is scheduled to release its earnings report after the market closes.

Minneapolis Fed President Neel Kashkari is also slated to deliver a speech later in the day.

Advancing issues surpassed declining issues by a ratio of 1.66 to 1 on the NYSE and by a ratio of 1.38 to 1 on the Nasdaq.

The S&P 500 recorded one new 52-week high and one new low, while the Nasdaq Composite registered 11 new highs and 19 new lows.