New York (AFP) – Wall Street stocks rebounded Wednesday led by Apple and other large tech companies as markets largely shrugged off US President Donald Trump’s latest tariff hikes. Apple piled on more than five percent after White House officials said the tech giant plans an additional $100 billion in capital spending in the United States. Amazon and Google parent Alphabet were among the other large tech names that also rose.
Dozens of economies around the world including the European Union and India are set to face higher US tariffs on Thursday, as US President Donald Trump’s long-threatened “reciprocal” duties over trade practices he deems unfair take effect. Trump also on Wednesday ordered an additional 25-percent tariff on Indian goods over New Delhi’s continued purchase of Russian oil, a key revenue source for Moscow’s war in Ukraine. Separate 50-percent US tariffs on Brazilian imports came into place Wednesday, with significant exemptions, after Trump targeted Latin America’s biggest economy over its prosecution of former president Jair Bolsonaro.
But Wall Street equities spent most of the day firmly in positive territory. The tech-rich Nasdaq finished up 1.2 percent to 21,169.42, less than 10 points from an all-time record. “This is a market that’s fueled by enthusiasm,” said Jack Ablin of Cresset Capital Management. “Nothing has blown up yet. Perhaps the impact of tariffs won’t be as great as investors originally feared.”
Earlier, Europe’s main markets also finished the day with gains. European investors are “in a relatively confident mood following a US-EU trade deal that eases concerns around tomorrow’s tariff headline,” said Joshua Mahony, chief market analyst at Rostro trading group. Markets are “heavily focused on the likes of India and Switzerland,” which have yet to reach a final agreement with Washington, he added.
Elsewhere, oil prices gyrated as markets tried to determine the latest Russia developments, with Trump saying late Wednesday that there was a high probability of a summit with his Russian counterpart Vladimir Putin in the near future. Oil prices finished down more than one percent, while the dollar slid against its main rival currencies.
In company news, shares in Danish drug giant Novo Nordisk fell 5.4 percent. The group reported a sharp rise in second-quarter net profit, but rising competition is hitting sales of its diabetes and obesity treatments Ozempic and Wegovy in the United States. In London, shares in Swiss mining and commodity giant Glencore shed 4.0 percent after it posted widening first-half losses on falling coal prices, US tariffs, and Middle East tensions. Disney fell 2.7 percent as it reported around a doubling of profits to $5.3 billion and announced a series of new deals to boost its upcoming ESPN streaming venture. However, McDonald’s jumped 3.0 percent as it reported an 11-percent rise in profits to $2.3 billion. While the fast food giant returned to sales growth at US stores, it warned that low-income consumers were cutting back amid financial pressures.
– Key figures at around 2120 GMT –
New York – Dow: UP 0.2 percent at 44,193.12 (close)
New York – S&P 500: UP 0.7 percent at 6,345.06 (close)
New York – Nasdaq Composite: UP 1.2 percent at 21,169.42 (close)
London – FTSE 100: UP 0.2 percent at 9,164.31 (close)
Paris – CAC 40: UP 0.2 percent at 7,635.03 (close)
Frankfurt – DAX: UP 0.3 percent at 23,924.36 (close)
Tokyo – Nikkei 225: UP 0.6 percent at 40,794.86 (close)
Hong Kong – Hang Seng Index: FLAT at 24,910.63 (close)
Shanghai – Composite: UP 0.5 percent at 3,633.99 (close)
Euro/dollar: UP at $1.1659 from $1.1575 on Tuesday
Pound/dollar: UP at $1.3358 from $1.3299
Dollar/yen: DOWN at 147.38 yen from 147.62 yen
Euro/pound: UP at 87.23 pence from 87.04 pence
Brent North Sea Crude: DOWN 1.1 percent at $66.89 per barrel
West Texas Intermediate: DOWN 1.2 percent at $64.35 per barrel
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© 2024 AFP
