New York (AFP) – Wall Street stocks fell Tuesday as a rally ran out of steam following lackluster economic data, while investors monitor ongoing trade talks ahead of new tariff hikes set to take effect later this week. US President Donald Trump told CNBC he plans fresh tariffs on imported pharmaceuticals and semiconductors. Trump also said he expects to raise the US tariff on Indian imports due to the country’s purchases of Russian oil. The statements come before a separate set of tariff hikes goes into force on dozens of economies later this week. Swiss officials traveled to Washington Tuesday to try to strike a last-minute deal.
Investors also digested an index of US services activity that came in at 50.1 percent, just barely in growth mode as companies contend with weaker hiring conditions and increased pricing pressure. The report comes on the heels of jobs data last Friday that pointed to slowing in the labor market. On the positive side, “a weaker economy could mean more rate cuts from the Fed,” said Adam Sarhan of 50 Park Investments. After opening higher, US indices fell into negative territory, with the S&P 500 ending down 0.5 percent.
European markets ended mixed, with Paris dipping into the red, while oil prices retreated further on worries about the demand outlook. Swiss leaders flew to Washington on Tuesday in a last-ditch effort to avoid a hefty 39-percent tariff. Meanwhile, the European Union on Tuesday announced the suspension of its retaliatory tariffs on US goods worth 93 billion euros ($107 billion) after Brussels struck a deal with Washington last month.
Among individual companies, Palantir Technologies jumped 7.9 percent after reporting its first quarter with more than $1 billion in revenues. The data analysis and artificial intelligence company also raised its full-year revenues forecast. Pfizer was another big winner after earnings as the drugmaker reported a big increase in profits to $2.9 billion behind higher sales of Covid-19 products and lower expenses. Shares jumped 5.2 percent. Diageo, the maker of Guinness stout and Smirnoff Vodka, rose 4.9 percent after raising its cost-savings targets following a sharp drop in profits due to the hit from US tariffs.
– Key figures at around 2100 GMT –
New York – Dow: DOWN 0.1 percent at 44,111.74 (close)
New York – S&P 500: DOWN 0.5 percent at 6,299.19 (close)
New York – Nasdaq Composite: DOWN 0.7 percent at 20,916.55 (close)
London – FTSE 100: UP 0.2 percent at 9,142.73 (close)
Paris – CAC 40: DOWN 0.1 percent at 7,621.04 (close)
Frankfurt – DAX: UP 0.4 percent at 23,846.07 (close)
Tokyo – Nikkei 225: UP 0.6 percent at 40,549.54 (close)
Hong Kong – Hang Seng Index: UP 0.7 percent at 24,902.53 (close)
Shanghai – Composite: UP 1.0 percent at 3,617.60 (close)
Euro/dollar: UP at $1.1582 from $1.1571 on Monday
Pound/dollar: UP at $1.3294 from $1.3285
Dollar/yen: UP at 147.55 yen from 147.09 yen
Euro/pound: DOWN at 87.01 pence from 87.10 pence
West Texas Intermediate: DOWN 1.7 percent at $65.16 per barrel
Brent North Sea Crude: DOWN 1.7 percent at $67.64 per barrel
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© 2024 AFP
