Shares are declining during early trading sessions, with Wall Street poised for its fifth consecutive week of losses. On Friday, the S&P 500 dropped by 0.8%. The Dow Jones Industrial Average decreased by 346 points, which equates to a 0.8% drop, while the Nasdaq Composite Index slid by 1%. For several weeks now, stocks across the board have been experiencing declines due to uncertainties surrounding the trajectory of the U.S. economy. An escalating trade dispute between the United States and major trading allies could exacerbate inflation issues and negatively impact both consumers and enterprises alike. Shares of Nike plummeted significantly following worries related to tariffs and their subsequent effect on annual fiscal projections. In addition, treasury yields witnessed a decline within the bond marketplace.
This is an updated breaking news item. The previous report from AP is as follows:
Wall Street appeared set to open lower on Friday, which could disrupt markets from achieving their first positive week in over a month.
The futures contracts for the S&P 500 and the Dow Jones IndustrialAverage were down by 0.3% ahead of trading commencement. Meanwhile, Nasdaq futures dropped by 0.4%.
After announcing expectations for revenue to remain flat to slightly lower compared to the previous year and reducing its earnings-per-share forecast, FedEx saw an 8% drop during pre-market trading.
Nike dropped 6.5% following forecasts of a significant decrease in revenue for the present quarter, attributing this downturn to geopolitical factors, additional tariffs imposed by the Trump administration, and diminished consumer confidence.
On Friday, Johnson & Johnson announced an investment of over $55 billion in various locations across the United States over the coming four years, which includes plans for constructing four additional factories. The company’s stock price remained relatively stable following this declaration.
Wall Street has experienced a weeks-long volatile journey, with stock prices fluctuating wildly due to uncertainties surrounding President Donald Trump's trade war and its impact on the economy.
There is concern that consumers, who are already tired of rising prices, might reduce their spending even more if tariffs cause costs to increase. As a result, businesses are incorporating this possibility into their most recent predictions.
The markets have not concluded a week in positive territory since the previous month's midpoint. Should they fail to reverse this trend by Friday, it would mark their fifth consecutive week of losses.
During European trading hours, Germany’s DAX decreased by 0.7% midway through the session as German legislators prepared to vote on a budget aimed at increasing expenditure on defense and infrastructure. The French CAC 40 similarly declined by 0.7%.
The UK's FTSE 100 dropped by 0.5% following the Bank of England’s decision to keep its primary interest rate unchanged the previous day. Meanwhile, the Federal Reserve, Bank of Japan, and China’s central bank also decided to maintain their current interest rates, opting to stay flexible as they monitor developments in Trump's trade conflict and other policy changes over the upcoming weeks.
European airline stocks faced decline following a blaze that cut off electricity at London's Heathrow Airport, leading to its complete closure throughout the day and causing widespread disruption to international travel affecting hundreds of thousands of travelers.
During early Asian trade sessions, Chinese financial markets continued their downturn, witnessing the Hang Seng index in Hong Kong plummeting by 2.2%, closing at 23,689.72 points, as China decided to maintain its primary borrowing rates steady. This decision led traders to offload tech stocks amidst recent upward movements.
The Shanghai Composite index dropped by 1.3% to reach 3,364.83.
In Tokyo, the Nikkei 225 finished down by 0.2%, closing at 37,677.06 points when trading resumed following a holiday on Thursday. The country’s core inflation rate declined slightly more modestly than anticipated, largely driven up by an increase in rice costs attributed to supply shortages.
The South Korean Kospi gained 0.2% to reach 2,643.13, whereas Australia's S&P/ASX 200 advanced by 0.2%, finishing at 7,931.20. Meanwhile, in Taiwan, the Taiex dropped 0.8%.
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