People are walking along Wall Street in New York City, USA. Photo by Michael Nagle for Bloomberg.
Wall Street showed a steady climb on Thursday, with most U.S. stocks moving higher in a quiet session. The S&P 500 extended its winning streak to four days, inching within 4% of its all-time peak set earlier this year. Meanwhile, the Dow Jones gained 271 points, while the Nasdaq slipped slightly.
Investors are still cautious, weighing mixed economic signals amid ongoing trade tensions between the U.S. and China. Recent reports painted an unclear picture of the economy’s health. Consumer spending was lower than expected, but inflation eased more than economists had predicted. Manufacturing appears to be shrinking, yet jobless claims fell, signalling some resilience.
The Federal Reserve’s future moves on interest rates remain a key focus. Falling Treasury yields suggest that the Fed might have room to cut rates later this year to support growth if the economy weakens due to tariffs. Still, it’s unclear whether the economy is heading toward a recession or recovering from uncertainty after President Trump paused many tariffs temporarily.
Ellen Zentner, a chief economic strategist, reminded investors that the trade battle isn’t over and that its impact will take time to show fully in economic data.
This uncertainty affected individual stocks, too. Walmart, the nation’s largest retailer, slipped 0.5% even after reporting a stronger profit than expected. The company avoided forecasting profits for the next quarter, citing unpredictable market conditions caused by tariffs. Walmart also said it will raise prices to cover higher costs from tariffs.
Deere & Company, the heavy equipment maker, reported a strong quarterly profit but lowered its annual profit forecast due to “near-term market challenges.” Still, its stock jumped nearly 4%. Cisco Systems also beat profit expectations and gained 4.8%, with analysts excited about its future in artificial intelligence.
On the flip side, Dick’s Sporting Goods shares dropped nearly 15% after announcing its plan to buy Foot Locker for $2.4 billion. However, Dick’s reported better profits than expected. Foot Locker’s stock soared more than 85%, recovering from earlier losses this year.
Crude oil prices fell around 2% amid hopes of a deal between the U.S. and Iran to ease sanctions, potentially increasing global oil supply.
Meanwhile, China rolled back some trade restrictions in a recent deal with the U.S. but criticized America’s tough stance on Chinese technology giant Huawei, accusing Washington of breaking trade rules.
Markets in Asia and Europe showed mixed results, with key indexes dropping slightly in Hong Kong and Shanghai.
Bond yields dropped on Thursday, pushing investors toward stocks. The 10-year Treasury yield fell, hinting that the Fed may cut rates as soon as September. Fed Chair Jerome Powell warned about the risk of frequent supply shocks driving inflation higher, which could challenge both the economy and policymakers.
