Economic Uncertainty Pressures Wall Street as European Stocks End Rally
US and European stock indices decline amid renewed tariff concerns and economic forecasts.
US and European stock markets experienced declines on Thursday, reflecting renewed concerns over the implications of tariff policies, following a day in which the Federal Reserve reaffirmed its plans for monetary easing while cautioning against economic uncertainty.
During trading, the Dow Jones Industrial Average decreased by 129.18 points, or 0.26%, closing at 41,877.53 points.
The S&P 500 fell by 40.71 points, or 0.49%, ending at 5,664.40 points, while the Nasdaq Composite dropped by 162.59 points, or 0.63%, to finish at 17,642.48 points.
This downturn in equities coincided with a drop in the yield on the 10-year Treasury note by 7 basis points to 4.185%, alongside a decline in the 2-year Treasury yield, which is more sensitive to interest rate changes, falling by 5 basis points to 3.928%.
Tesla’s stock declined by 1.3% to $233.28, while Alphabet’s shares fell 0.75% to $162.59 as the owner of the Google search engine contended with European Union regulations aimed at diminishing the dominance of major tech firms.
The Federal Reserve maintained its expectations of two interest rate cuts this year after keeping the federal funds rate unchanged in a range of 4.25% to 4.5%.
The central bank also raised its inflation forecasts while lowering its outlook for economic growth.
In Europe, stock markets declined for the first time in five sessions amid global economic uncertainty, which overshadowed the monetary policy decisions by the Bank of England.
The Stoxx Europe 600 index fell approximately 0.45% to 552.9 points, though gains in utility and energy sector stocks moderated the losses for the index.
The FTSE 100 index remained stable, ending at 8,701 points, while the French CAC 40 decreased by 0.95% to 8,094 points, and the German DAX lost 1.25% to close at 22,999 points.
European Central Bank President Christine Lagarde informed legislators that the tariffs imposed by the United States on imports from Europe could reduce eurozone growth by about 0.3% in the first year, with retaliatory measures potentially increasing that percentage to 0.5%.
The Bank of England held its main interest rate steady at 4.5% during its recent meeting, warning of the uncertainty generated by US trade policy under President Trump and its potential effects on global growth and inflation.
During trading, the Dow Jones Industrial Average decreased by 129.18 points, or 0.26%, closing at 41,877.53 points.
The S&P 500 fell by 40.71 points, or 0.49%, ending at 5,664.40 points, while the Nasdaq Composite dropped by 162.59 points, or 0.63%, to finish at 17,642.48 points.
This downturn in equities coincided with a drop in the yield on the 10-year Treasury note by 7 basis points to 4.185%, alongside a decline in the 2-year Treasury yield, which is more sensitive to interest rate changes, falling by 5 basis points to 3.928%.
Tesla’s stock declined by 1.3% to $233.28, while Alphabet’s shares fell 0.75% to $162.59 as the owner of the Google search engine contended with European Union regulations aimed at diminishing the dominance of major tech firms.
The Federal Reserve maintained its expectations of two interest rate cuts this year after keeping the federal funds rate unchanged in a range of 4.25% to 4.5%.
The central bank also raised its inflation forecasts while lowering its outlook for economic growth.
In Europe, stock markets declined for the first time in five sessions amid global economic uncertainty, which overshadowed the monetary policy decisions by the Bank of England.
The Stoxx Europe 600 index fell approximately 0.45% to 552.9 points, though gains in utility and energy sector stocks moderated the losses for the index.
The FTSE 100 index remained stable, ending at 8,701 points, while the French CAC 40 decreased by 0.95% to 8,094 points, and the German DAX lost 1.25% to close at 22,999 points.
European Central Bank President Christine Lagarde informed legislators that the tariffs imposed by the United States on imports from Europe could reduce eurozone growth by about 0.3% in the first year, with retaliatory measures potentially increasing that percentage to 0.5%.
The Bank of England held its main interest rate steady at 4.5% during its recent meeting, warning of the uncertainty generated by US trade policy under President Trump and its potential effects on global growth and inflation.
Translation:
Translated by AI
