US stocks were mixed on Thursday as more data showed milder inflation pressures, even as President Trump renewed his threat to impose “take it or leave it” tariffs on trading partners.
The Dow Jones Industrial Average (^DJI) fell below the flatline, as component Boeing (BA) slumped in the wake of a deadly plane crash in India.
The S&P 500 (^GSPC) gained almost 0.2%, while the tech-heavy Nasdaq Composite (^IXIC) also rose about 0.1%.
Stocks were little changed after the S&P 500 (^GSPC) snapped this week’s run of wins. Investors are adding growing tensions in the Middle East to worries over Trump’s trade policy, such as the fragility of the US-China detente.
Fresh price data showed a so-far mild impact from Trump’s tariff policies, as wholesale inflation increased less than economists expected. The report came after the consumer counterpart showed an easing in price pressures in the wake of Trump’s “reciprocal” tariff hikes in April.
Further hints that tariffs are sparing inflation could put the Federal Reserve in a tight spot ahead of its policy meeting next week. Bets on interest-rate cuts this year have mounted, but analysts expect officials to maintain their wait-and-see approach to economic data and policy decisions, with September seen as the most likely spot to resume rate cuts.
While investor focus is shifting back to the Fed, Wall Street is still closely following the latest twists and turns in Trump’s tariff policy in the hunt for clarity.
US trading partners will get letters within a week or two to set their unilateral tariff rates, Trump reiterated on Wednesday, renewing the threat of no-deal hikes.
But Treasury Secretary Scott Bessent told Congress it’s “highly likely” that countries in trade negotiations with the US will see an extension of the 90-day tariff pause, currently set to expire July 9.
