U.S. stocks stumbled on Thursday as investors digested mixed signals from President Trump and his top advisers. Futures attached to the Dow Jones Industrial Average fell 0.3%, while futures linked to the benchmark S&P 500 hugged the flatline. Those on the tech-heavy Nasdaq Composite gained 0.2%.
On Wednesday, stocks rallied as the U.S. floated the idea of slashing tariffs on China, though the stock surge eased when Treasury Secretary Janet Yellen clarified that there had been “no unilateral offer from the president to deescalate” the trade war with China. Meanwhile, on Thursday, the U.S. eased its rhetoric, demanding the elimination of all tariffs and denying that any talks had taken place between the nations. While Trump’s apparent eagerness to negotiate takes center stage, his approach to other key tariffs remains unclear.
The Financial Times reported that the Trump administration is considering exempting automakers from the most punishing auto tariffs, yet Trump hinted from the Oval Office that a 25% tariff on cars imported from Canada could increase. The White House also announced a probe into truck imports, paving the way for potential tariffs on the sector. Among individual stocks, IBM shares plummeted by more than 7% on Thursday after the company revealed that 15 government contracts were affected by cost cuts from the Trump administration, resulting in a $100 million setback.
Chipotle shares fell more than 3% after the company’s earnings missed expectations and it lowered its 2025 forecast. Investor attention is also on Intel, which is set to report its earnings after the bell on Thursday. The results will be the first under the leadership of its new CEO, Pat Gelsinger.
Bessent denies trade war offer
Procter & Gamble’s stock fell 1% as it lowered its profit forecast, citing a pullback in consumer spending amid recession concerns related to tariffs. “We expect uncertainty to continue,” said P&G CEO Jon Moeller. The company now expects total net sales for 2025 to remain flat compared to last year, down from the previously expected growth of 2% to 4%.
American Airlines also pulled its full-year guidance, saying it will provide an update when the economic outlook becomes clearer. The guidance pulled from America comes after its peer Delta cited economic uncertainty surrounding the trade war as a headwind earlier this month. On Thursday morning, American reported first-quarter revenue of $12.6 billion versus expectations of $12.53 billion, with an adjusted loss per share of $0.59 versus a loss of $0.69 expected by Wall Street.
Other notable movements include PepsiCo’s rare guidance cut, as the company now sees no earnings growth in 2025 amid the trade war, previously expecting low-single-digit percentage growth. Texas Instruments shares surged 4.7% in after-hours trading after the chipmaker delivered a strong first-quarter beat, posting earnings of $1.28 per share on revenue of $4.07 billion, outpacing Wall Street forecasts. Gold rebounded after its most significant single-day drop of the year as dip-buyers stepped in. At the same time, the dollar pulled back from a recent rebound after President Trump walked back unsubstantiated threats to remove Federal Reserve Chair Jerome Powell from office.
The economic data released on Thursday includes initial jobless claims, the Chicago Fed National Activity Index, durable goods orders, capital goods orders, existing home sales, and the Kansas City Fed Manufacturing Activity Index. As investors remain cautious with tariff-related uncertainty, the market continues to watch for any signs of stress amid ongoing economic complexities.
Image Credits: Photo by / Ricardo on Unsplash
