US stocks climbed on Wednesday but failed to hold early gains as former President Donald Trump gave mixed signals about trade with China. The S&P 500 rose by 3.6% early in the day but closed up just 1.67%. It was the index’s second straight daily gain, though investor uncertainty remained high.
Trump Announces Tariff Cuts, Then Sends Conflicting Signals
Trump surprised markets by saying the US would cut tariffs on Chinese goods. However, he also denied reports that he planned to fire Federal Reserve Chair Jerome Powell. Sources said the White House discussed a tiered tariff system. Tariffs on sensitive items could stay at 100%, while others might drop to between 35% and 65%.
US Treasury Secretary Scott Bessent dismissed claims that the US made a one-sided offer to reduce tariffs. He stressed that the US wants broader trade reforms. Bessent also criticized China’s status as a “developing country” in global organizations. He said China’s global position no longer justifies special treatment.
Auto Tariff Confusion Adds to Market Worries
More confusion came from reports about auto tariffs. Some sources said the US might ease duties on Chinese car parts. But Trump denied this and instead talked about raising tariffs on Canadian imports. Earlier this month, the US set a 25% tariff on all car imports, with a one-month exception for USMCA partners.
Market analyst Michael Brown told EuroNews24 that Trump’s shifting trade policies hurt investor confidence. “This unpredictability pushes investors to move away from US assets,” he said. Brown warned that such swings could harm long-term market stability.
Futures Slide as Markets React to Mixed Policy Signals
By 6:00 a.m. CEST Thursday, US stock futures dipped due to rising uncertainty. Dow Jones futures fell by 0.28%, S&P 500 futures dropped by 0.14%, and Nasdaq futures slid 0.22%.
Asian markets had mixed reactions. Hong Kong’s Hang Seng Index fell by 1.23%. South Korea’s Kospi dropped 0.33%. Japan’s Nikkei rose 0.58%, and Australia’s ASX 200 gained 0.66%, going against the regional trend.
European Markets Stay Steady Despite US Volatility
In contrast, European stocks performed well. Germany’s DAX jumped 3.14%, reaching a one-month high. The Euro Stoxx 600 rose 1.8%. Analysts said stable economic conditions in Europe helped support the market.
Euro Drops, Gold Rises as Investors Seek Safety
The euro fell sharply to 1.13 against the dollar, down from 1.1566 earlier in the week. Investors turned to the US dollar as Trump’s unpredictable actions added to global risks. However, some experts doubted the dollar’s strength could last under ongoing policy confusion.
Gold prices rose for a second straight day as investors looked for safer assets. Spot gold climbed 1.2% to $3,329 per ounce by 5:55 a.m. CEST. Gold futures were up 1.3%, trading at $3,338 during Asian hours. The surge showed rising demand for stability amid economic and political uncertainty.
Markets remain cautious as Trump’s trade statements continue to shift. While hints of tariff cuts lifted stocks briefly, mixed messages from Washington have sparked concern. Investors are moving toward safe-haven assets like gold, the dollar, and more stable regions like Europe.