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US stock futures fell as Wall Street looked forward to wrapping up a week marked by growing doubts about the economy’s health under President Trump’s trade and tax agendas.
Futures attached to the Dow Jones Industrial Average (YM=F) inched 0.1% down, with S&P 500 futures losing 0.2% (ES=F), while tech-heavy Nasdaq 100 contracts (NQ=F) slipped 0.3%
The week opened with Moody’s downgrade of the US credit score front and center for investors. While Wall Street initially shrugged off the news, by Tuesday markets pulled back from their recent rally amid warnings that investor relief over easing trade tensions looked overblown with tariff rates still high and economic growth projections muted.
Read more: The latest on Trump’s tariffs
Markets rose across Asia-Pacific region after senior officials from the US and China had their first formal talk since meeting in Geneva to declare a trade truce earlier this month. Indexes across the region saw slight gains, showing investor optimism for a calmer fiscal future.
While Trump and his allies maintain the legislation will boost spending and investment, it stands to add trillions to US debt, an issue that Moody’s mentioned in its downgrade. Now, the bill heads to the Senate, where Republican lawmakers have already flagged major changes that need to take shape.
The bond market, in particular, had a strong reaction to the bill’s advancement, with the yield on 30-year Treasury bonds exceeding 5% on Wednesday. The action suggested that even if Trump is able to pass the legislation, he may face a dizzying array of consequences afterward that could threaten economic growth.
Next week, Wall Street will be counting down to Nvidia (NVDA) earnings, which are set for Wednesday after the bell.
This year, the chip giant has found itself in the crosshairs of Trump’s fast-moving trade policy as well as debates in Big Tech over costly AI investments. Nevertheless, options traders expect a lower level of volatility from Nvidia shares after this earnings report compared to recent quarters.
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Asian markets rise with investors digesting the US and China resuming trade talks
Asian markets mostly advanced overnight Thursday as investors weighed regional economic data and fresh diplomatic signals between the US and China.
Japan’s Nikkei 225 (^N225) rose 1% with the government recording core inflation at 3.5%, the highest in over 2 years.
South Korea’s Kospi (^KS11) added 0.4% despite weakness in Korean tech stocks.
Australia’s S&P/ASX 200 (^AXJO) climbed 0.3%, led by gains in miners and banks.
Hong Kong’s Hang Seng Index (^HSI) and China’s CSI 300 (000300.SS) were flat at the open, as caution prevailed among investors navigating mixed economic signals from the mainland.
Many of the gains were driven by Chinese Vice Foreign Minister Ma Zhaoxu and U.S. Deputy Secretary of State Christopher Landau held a phone call, agreeing to keep communication open. The exchange, confirmed by China’s Foreign Ministry, comes amid efforts by both nations to stabilize ties following trade tensions and policy disputes.
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Oil prices fall as OPEC+ hint at production increase
Oil prices fell late Thursday as OPEC+ producers pointed toward an increase in supply as the US faces a surplus.
Bloomberg reports:
