NEW YORK — The stock market fluctuated on Thursday even after the European Central Bank reduced interest rates again, as investors remained apprehensive about the consequences of President Donald Trump’s tariff actions.
In New York, the Dow and the technology-focused Nasdaq saw further declines, whereas the widely encompassing S&P 500 showed slight gains.
On Wednesday, Wall Street experienced a downturn following comments from Federal Reserve Chairman Jerome Powell, who stated that President Trump’s extensive tariffs would probably cause “at least a short-term increase in inflation.”
He mentioned that this situation might force the U.S. central bank into an uncomfortable position where they have to decide whether to focus on combating inflation or dealing with unemployment.
Trump hit back Thursday, slamming Powell for not lowering interest rates as the ECB has done and saying his “termination cannot come fast enough.”
“Overall, the trade news and Powell’s remarks created a challenging environment for markets,” according to a Deutsche Bank analyst report.
The Paris and Frankfurt stock markets finished lower before the Easter break due to warnings from the ECB that increasing trade disputes might put pressure on economic expansion within the eurozone.
Although Trump’s tariffs have heightened the risk of slower growth within the eurozone, ECB Chief Christine Lagarde stated that their effect on inflation remains “unclear.”
The ECB decided to lower interest rates by a quarter point to 2.25 percent, the sixth consecutive time it has moved to ease borrowing costs.
Trump imposed 10 percent tariffs on all imports this month, although he suspended higher duties on dozens of nations for 90 days.
He has also placed 25 percent levies on imported steel, aluminium and cars.
Shares in French luxury giant Hermes fell more than three percent after the Birkin handbag maker said it would raise prices at its US stores to offset the tariff impact.
Elsewhere, the London stock exchange finished flat.
‘Big Progress!’
Investors found solace in Trump declaring “Big Progress!” in tariff negotiations with Japan, with Tokyo leading Asian stocks higher.
Tokyo’s envoy Ryosei Akazawa said: “I understand that the US wants to make a deal within the 90 days. For our part, we want to do it as soon as possible.”
As Japanese firms stand as the largest investors in the United States, Tokyo’s discussions draw significant attention from financial markets.
Although Japanese Prime Minister Shigeru Ishiba cautioned that the discussions “will not be simple,” he mentioned that the president expressed his wish to prioritize these negotiations “…above all else.”
Elsewhere, safe-haven investment gold hit a fresh record above $3,357.78 an ounce before paring back gains, while the dollar and oil prices firmed.
Hopes that Trump’s blistering tariffs could be pared back have helped temper some of the disquiet on markets after a rout at the start of the month fuelled by talk of a global recession and an upending of historic trading norms.
“But don’t get carried away — the market remains jittery,” said Fawad Razaqzada, market analyst at City Index and Forex.com.
Key figures at 2030 GMT
New York – Dow: DOWN 1.3 percent at 39,142.23 points (close)
New York – S&P 500: UP 0.1 percent at 5,282.70 (close)
New York – Nasdaq: Decreased by 0.1 percent to close at 16,286.45.
London – FTSE 100: REMAINS STEADY AT 8,275.66 (closing level)
Paris – CAC 40: Down 0.6% to close at 7,285.86
Frankfurt – DAX: Down 0.5% to close at 21,205.86
Tokyo – Nikkei 225: Increased by 1.4 percent to close at 34,377.60.
Hong Kong – Hang Seng Index: Increased by 1.6 percent to close at 21,395.14.
Shanghai – Composite: Increased by 0.1 percent to close at 3,280.34.
Euro/dollar: DOWN at $1.1370 from $1.1395 on Wednesday
Pound/dollar: UP $1.3268 at $1.3235
Dollar/Yen: Increased to 142.39 yen from 142.12 yen.
Euro/pound: DOWN at 85.67 pence from 86.06 pence
Brent North Sea Crude: UP 3.2 percent at $67.96 per barrel
West Texas Intermediate: Increased by 3.5 percent to reach $64.68 per barrel
dan-bcp-lth-bys/tgb