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Cnn
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American actions were mixed on Thursday as President Donald Trump praised the progress of the trade agreement with Europe and China and the investors digested a threat from the president to dismiss the federal reserve Jerome Powell.
The actions initially vacated Thursday morning after Trump called for Powell’s “termination” for not having reduced interest rates fairly quickly – a criticism that he has taken several times in a longtime quarrel between the president and the Fed chair.
However, the markets raised JAB’s shoulders in Powell and got a boost in the afternoon when Trump said that there will be “100%” a trade agreement with the European Union and a “very good deal” with China. Investors were under the progress of commercial talks during the 90 -day break on most “reciprocal” prices.
“Oh, there will be a 100%trade agreement,” Trump told journalists at a meeting with Italian Prime Minister Giorgia Meloni. “Of course, there will be a trade agreement. They want to make a lot. We will conclude a trade agreement. I expect it fully. But it will be a good deal. ”
Trump also said he was not worried that the American allies were turning to China because of his prices.
“No one can compete with us,” said Trump. “Person.”
“I think you will see that we will make a very good deal with China,” he added.
The DOW dropped by 527 points, or 1.33%. The wider S&P 500 maintained its earnings and bordered more than 0.13% after plunging into the red in the morning. The nasdaq composite heavy with technology fell 0.13% after fluctuating between gains and losses.
The three major indexes appeared in consecutive days of losses and ended the week in red. Exchanges in the United States will be closed on Friday while respecting Good Friday.
Dow Futures had dropped strongly Thursday morning when Trump posted Powell -castigated social media. The DOW was also driven below by Unitedhealth Group (UNH), which flowed 22.38% after the health care giant reduced its profits for this year. The DOW is weighted by the share price, and United has a significant influence on the performance of the index.
“Jerome Powell of the Fed, which is still too late and bad, published yesterday a report which was another and typical,” Mess! “Trump published Trump on social networks.” Powell’s termination cannot come quickly enough! ”
Trump told Journalists from the White House on Thursday that Powell “left” if he asked. Trump then ignored a follow -up question to find out if he tries to remove Powell.
“The independence of the Fed is more important than ever at a time when there is a risk for the expectations of inflation and underlying inflation of Trump’s pricing inflation, and the reallocation of the United States World Portfolio in the middle of American erratic decision-making,” said Krishna Guha, vice-president of the Evercore ISI, in a note on Thursday.
Powell said on Wednesday at an economic event in Chicago that Trump’s prices did not resemble anything in modern history, with the potential to unravel inflation and drag on economic growth, complicating the work of the Fed and the prospects of the economy. This led to a quick sale on Wednesday, the DOW closing 700 points less, or 1.73%. The S&P 500 fell 2.24% and the NASDAQ composite closed 3.07% lower.
“We can find ourselves in the difficult scenario in which our double -compressed objectives are in tension,” said Powell.
This week, investors also digested profits for the first quarter. Companies on profit calls have said that uncertainty makes it extraordinarily difficult to plan in advance. United Airlines (UAL) offered two versions of advice this week: one for a recession scenario and one for a non -recessive “stable” scenario.
“It is really difficult to have a conviction today with the gigantic uncertainty in the economy and in trade policy,” said Jed Ellerbroek, portfolio director at Capital Management.
“Recent developments recall that market oscillations are likely until there is a greater certainty of prices,” said Solita Marcelli, investment director for UBS Global Wealth Management Americas in a note on Thursday.
A new international monetary fund report that will be published next week will include “notable marked” in economic growth forecasts, Kristalina Georgieva, CEO, in a speech, said on Thursday.
“The volatility of the financial markets is increasing. And the uncertainty of commercial policy is literally outside the graphics,” said Georgieva.
Alphabet (Goog), Google’s parent company, slipped 1.38% on Thursday after a federal judge ruled that Google had illegally built the “monopoly power” with its web advertising business.
NVIDIA (NVDA) slipped 2.87% Thursday after falling 6.87% on Wednesday. The flea manufacturer said on Tuesday that there would be a blow of $ 5.5 billion because the US government has imposed new export restrictions on the sale of his H20 china china. Advanced Micro Devices (AMD), another flea manufacturer, said that in a regulatory file this week, this could take a blow of $ 800 million due to similar export restrictions.
Dan Ives, analyst at Wedbush Securities, said in a note on Thursday that there was “a lot of anxiety on the market” since Trump unveiled his “reciprocal” prices plan on April 2.
“This week was the first blows in the trade war in the world of technology, because the White House has essentially prevented Nvidia from selling its main H20 fleas to China,” Ives said.
Mohit Kumar, chief economist and strategist for Europe at Jefferies, said in a note: “We remain influenced by Big Tech because we think that it could be used as a lever effect in commercial discussions.”
The stock -up contracts had won overnight because the investors enjoyed a relative moment of calm. Trump posted Wednesday afternoon on social networks he had met the Japanese business delegation. “Great progress!” Trump wrote.
Trump said on Thursday morning that he had a “very productive call” with Mexico President Claudia Sheinbaum on Wednesday.
“Likewise, I met Japanese trade representatives of higher level,” wrote Trump. “It was a very productive meeting. Each nation, including China, wants to meet! Today, Italy! ”
The yield on the 10 -year treasure increased to 4.326%, against Wednesday. The US dollar index was relatively unchanged after slipping at a three -year hollow on Wednesday.
On Thursday, the European Central Bank reduced its main interest rate while Trump prices presage to have an impact on the region’s economy. The European Stoxx 600 reference index fell 0.13%.
Oil moved above Thursday after the Treasury Department published new sanctions against Iranian oil on Wednesday and Trump on Thursday said a potential trade agreement with the EU, stimulating demand prospects.
US oil increased by 3.54% to set up at $ 64.68 per barrel. Brent Crude, the world reference, gained 3.2% at $ 67.96 per barrel.
