U.S. Stocks May Lack Direction Amid Trade Uncertainty

(RTTNews) - The major U.S. index futures are currently pointing to a roughly flat open on Thursday, with stocks likely to show a lack of direction after moving mostly higher over the course of the previous session.

Uncertainty about President Donald Trump's trade policies may keep some traders on the sidelines, as he continues to threaten higher tariffs on various sectors and countries.

"Trump is throwing out numbers left, right and centre, and investors have begun to dismiss anything that isn't set in stone," said Dan Coatsworth, investment analyst at AJ Bell.

"So many of Trump's decisions have either been rolled back, forgotten about, or kicked down the road," he added. "For investors, that means a shift in focus back to economic data and corporate news flow as key drivers for markets."

After ending Tuesday's choppy trading session little changed, stocks moved mostly higher over the course of the trading session on Wednesday.

The major averages gave back ground after an early advance but moved back to the upside as the day progressed, closing firmly in positive territory.

The tech-heavy Nasdaq jumped 192.87 points or 0.9 percent to a new record closing high of 20,611.34, the S&P 500 climbed 37.74 points or 0.6 percent to 6,263.26 and the Dow rose 217.54 points or 0.5 percent to 44,458.30.

The strength on Wall Street may partly have reflected optimism about a potential trade between the U.S. and the European Union.

A report from the Financial Times indicated EU negotiators are closing in on a trade deal with the U.S. that would cement higher tariffs than those granted to the U.K.

Nvidia (NVDA) helped lead the markets higher, with the AI darling jumping by 1.8 percent and briefly becoming the first company to reach a market capitalization of $4 trillion

Traders also kept an eye on the latest developments on the trade front, with President Donald Trump posting several more letters to world leaders on Truth Social revealing plans to increase tariffs.

Trump posted letters sent to the leaders of the Philippines, Brunei, Moldova, Algeria, Iraq, Libya and Sri Lanka after posting letters sent to the leaders of 14 other leaders earlier in the week.

Meanwhile, the Federal Reserve released the minutes of its June monetary policy meeting, which revealed most participants generally agree the central bank is well positioned to wait for more clarity on the outlook for inflation and the economy before adjusting interest rates.

The Fed's "wait and see" approach comes as participants said economic growth and the labor market remain solid and described monetary policy as moderately or modestly restrictive.

Housing stocks turned in some of the market's best performances on the day, with the Philadelphia Housing Sector Index surging by 2.9 percent to its best closing level in over four months.

Significant strength was also visible among gold stocks, as reflected by the 1.9 percent gain posted by the NYSE Arca Gold Bugs Index.

Biotechnology and utilities stocks also saw notable strength, while oil service stocks gave back ground after Tuesday's surge, dragging the Philadelphia Oil Service Index down by 1.1 percent.

Commodity, Currency Markets

Crude oil futures are falling $0.53 to $67.85 a barrel after inching up $0.05 to $68.38 a barrel on Wednesday. Meanwhile, after edging up $4.10 to $3,321 an ounce in the previous session, gold futures are rising $9.80 to $3,330.80 an ounce.

On the currency front, the U.S. dollar is trading at 146.49 yen versus the 146.33 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1704 compared to yesterday's $1.1720.

Asia

Asian stocks ended Thursday's session mostly higher, unfazed by U.S. President Donald Trump's latest tariff salvos.

After threatening tariffs on copper and pharmaceuticals, Trump upped the stakes in his global trade war with a fresh round of tariffs on imports from eight nations.

He imposed a 50 percent tariff on Brazilian imports over Jair Bolsonaro's prosecution, prompting sharp retaliation from President Lula.

Gold edged higher on a softer dollar and lower bond yields, while oil prices were little changed in Asian trading on signs of rising U.S. stockpiles and concerns about global economic outlook.

China's Shanghai Composite Index rose 0.5 percent to 3,509.68 and Hong Kong's Hang Seng Index climbed 0.6 percent to 24,028.37, as investors looked through the latest tariff headlines. EV and real estate stocks rallied after Beijing pledged policy support for job stability.

Japanese markets ended lower amid uncertainty over tariffs and an upcoming election. The Nikkei 225 Index dropped 0.4 percent to 39,646.36, while the broader Topix Index settled 0.6 percent lower at 2,812.34.

Seoul stocks rose for the fourth consecutive session to climb to a nearly four-year high as the Bank of Korea kept its benchmark interest rate unchanged, citing concerns over rising house prices.

Semiconductor shares rose following a big tech rally on Wall Street overnight led by Nvidia. The Kospi jumped 1.6 percent to 3,183.23, marking the highest closing level since Sept. 7, 2021.

SK Hynix, a key supplier to Nvidia, soared 5.7 percent and internet platform Naver rallied 2.2 percent.

Australian markets advanced, led by banks and miners. Gold stocks rebounded after their sharpest plunge in three weeks in the previous session.

The benchmark S&P/ASX 200 Index rose 0.6 percent to 8,589.20, while the broader All Ordinaries Index closed up 0.6 percent at 8,826.70.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index finished marginally lower at 12,760.20.

Europe

European stocks are moving higher for a fourth consecutive session on Thursday as optimism prevails about a potential trade deal between the U.S. and the European Union.

EU trade chief Maros Sefcovic said there was good progress on a framework trade agreement and a deal may even be possible within days.

Meanwhile, German inflation eased to the lowest in eight months in June, as initially estimated, due to continued decline in energy prices and slowdown in food inflation, final data from Destatis showed today.

Consumer price inflation slowed to 2.0 percent in June, in line with the flash estimate, from 2.1 percent in May. A similar lower rate was last reported in October 2024. While the U.K.'s FTSE 100 Index is up by 1.0 percent, the French CAC 40 Index is up by 0.3 percent and the German DAX Index is just above the unchanged line.

In corporate news, Nordex SE has rallied after the wind turbine manufacturer announced strong order intake of 2.3 GW in the second quarter of 2025.

DCC, a sales, marketing, and support services provider, has also moved higher after delivering first quarter operating profit growth in line with expectations.

Jupiter Fund Management has also surged after it agreed to acquire CCLA, a U.K. asset manager covering non-profit organizations.

Global advertising and communications company WPP has also advanced after appointing Microsoft's Cindy Rose as its new CEO.

Meanwhile, Barry Callebaut AG shares have slumped. The chocolate maker cut its sales volume guidance for a second time within three months due to persistent cocoa bean price volatility.

U.S. Economic News

First-time claims for U.S. unemployment benefits unexpectedly edged modestly lower in the week ended July 5th, according to a report released by the Labor Department on Thursday.

The report said initial jobless claims dipped to 227,000, a decrease of 5,000 from the previous week's revised level of 232,000.

Economists had expected jobless claims to inch up to 235,000 from the 233,000 originally reported for the previous week.

The Labor Department said the less volatile four-week moving average also slipped to 235,500, a decrease of 5,750 from the previous week's revised average of 241,250.

At 10 am ET, St. Louis Federal Reserve President Alberto Musalem is due to participate in a fireside chat on the U.S. economy and monetary policy before a live broadcast forum hosted by the Official Monetary and Financial Institutions Forum.

The Treasury Department is scheduled to announce the results of this month's auction of $22 billion worth of thirty-year bonds at 1 pm ET.

At 1:15 pm ET, Federal Reserve Board Governor Christopher Waller is due to participate in a "Balance Sheet" discussion before an event hosted by the Federal Reserve Bank of Dallas and the World Affairs Council of Dallas/Fort Worth.

San Francisco Federal Reserve President Mary Daly is scheduled to speak on "The U.S. Economic Outlook and Challengers for Policymakers" before an MNI Livestreamed Connect Video Conference at 2:30 pm ET.