U.S. stock futures traded flat following a mixed day on Wall Street. Early relief from easing trade tensions was tempered by renewed concerns about the economic effects of President Trump’s tariffs. Futures for the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 each rose slightly by 0.1%.
Walmart’s Earnings Highlight Tariff Impact
Market swings on Thursday centered on Walmart’s earnings report. The retail giant warned that price increases are “inevitable” due to tariffs imposed by the Trump administration. Meanwhile, new economic data showed retail sales slowed in April, but wholesale inflation eased as the trade policies took effect.
Asia-Pacific Markets Mixed as Japan Reports GDP Decline
Overnight, Asia-Pacific stocks opened mixed. Investors absorbed Japan’s unexpected GDP contraction while awaiting a series of key economic data releases across the region. Speculation grew that extended tariffs could further impact China’s economy.
Consumer Sentiment Survey to Provide Further Insight
Investors are looking ahead to Friday’s release of the University of Michigan’s consumer sentiment survey. This report will offer insight into how Americans are responding to tariffs. Earlier this month, a related report revealed a drop in consumer confidence and a rise in inflation expectations.
Wall Street Cautious Despite Trade Progress
The mood on Wall Street has shifted since the start of last week, when the U.S. and China agreed to reduce some tariffs. Optimism about easing trade tensions is now giving way to the reality that many tariffs remain in place. Their full impact on the economy is still unclear. Investors will closely watch for the next major update in the trade negotiations.
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