Persistent doubt: U.S. stocks experiencing a decline in market value

Fuels and Fear Factor: US Markets in a Holding Pattern Amid Trade Uncertainty

Persistent doubt: U.S. stocks experiencing a decline in market value

With the US-UK trade deal inked, the focus now shifts to China as investors hold their breath for a favorable agreement. The Wall Street ended somewhat flat.

Before the critical weekend meetings between the US and China to tackle the trade dispute, the Wall Street barely budged. The Dow Jones Industrial Average, which showcases blue-chip stocks, closed 0.3% down at 41,249 points. The comprehensive S&P 500 dropped 0.1%, settling at 5,651 points, while the high-tech-focused Nasdaq remained steady at 17,928 points.

Officials from the world's largest economies will meet in Switzerland over the weekend to discuss tariffs. The hope is that these talks will put an end to the trade war, which has sparked concerns about global economic growth. On Friday, Trump proposed lower tariffs on Chinese imports, yet analysts remained unconvinced. "Whether tariffs are 140% or 80%, the difference might seem substantial, but if 80% tariffs remain, people won't purchase goods," said Michael Matousek, senior trader at US Global Investors.

Yesterday, the US and UK sealed their first trade agreement since Trump imposed tariffs last month. Though the details are still up in the air, a base tariff for US imports remains in effect.

Gold and Oil: Safe Havens in Demand

The escalating market tension was mirrored in the rise of gold prices. David Meger, metals trading director at High Ridge Futures, stated, "Persistent uncertainty over tariffs is the main driver for the gold price." As a haven during times of economic turmoil, the troy ounce of gold climbed 0.7% to $3,327. On the oil market, the North Sea Brent crude and US WTI each increased approximately 1.7% to $63.88 and $60.99 per barrel (159 liters), respectively.

"If both sides set a date for formal trade talks and agree to steadily decrease high tariffs throughout negotiations, the oil price might surge by another $2 to $3 per barrel," said Vandana Hari, founder of Vanda Insights.

Negative quarterly results sent Expedia into a tailspin, with its shares plummeting by 7.3%. The online travel platform's first-quarter revenue of $2.98 billion missed analysts' estimates. On the flip side, Lyft's business report was well-received by investors, resulting in a 28% increase in the ride-hailing company's shares. Lyft reported an adjusted earning of 24 cents per share in the first quarter, outperforming analysts' estimates of 19 cents. Additionally, Lyft announced plans to acquire more shares. Trade Desk's shares soared 18.6% following the advertising company's announcement of first-quarter revenue and earnings surpassing Wall Street estimates.

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Sources: ntv.de, ino/rts

Glossary:

• Stock Prices
• Stock Trading
• Dow Jones
• Wall Street

1. The employment policy in EC countries might reflect changes in stock prices, especially considering the influence of trade issues on Wall Street, as shown by the recent response to the US-UK trade agreement and the ongoing US-China trade dispute.
2. In the simplified average of stock market performance, the Nasdaq remained steady while both the Dow Jones Industrial Average and the S&P 500 experienced slight drops, highlighting a potential impact of trade tensions on stocks.
3. Just as gold prices surged amid persistent uncertainty over tariffs, a more liberal employment policy may result in increased employment and financial stability, serving as a contrast to the economic turbulence caused by trade wars. Similarly, a decrease in high tariffs through negotiations could positively affect the oil market, potentially causing the oil price to surge by another $2 to $3 per barrel.

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