(Bloomberg) — Wall Street continued to face intense swings from tariff headlines, with stocks trimming losses amid a potential reprieve for the US’s two largest trading partners.
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Equities bounced off session lows as Commerce Secretary Howard Lutnick told CNBC that President Donald Trump is likely to defer his 25% tariffs on Canada and Mexico for all goods and services covered by the North American trade agreement known as USMCA. The US dollar fell, while the peso and the loonie advanced. Treasury trading was fairly muted — in contrast to the extended plunge in Europe.
A selloff in technology shares kept a lid on the market, with Nvidia Corp. leading a rout in megacaps. Marvell Technology Inc. plunged as its outlook disappointed investors looking for a bigger payoff from the AI boom. Broadcom Inc. slumped ahead of its earnings report. Alibaba Group Holding Ltd. climbed after unveiling its latest open-sourced AI model.
Just 24 hours ahead of the all-important US payrolls report, data showed jobless claims fell last week, offering some relief after other figures pointed to a worsening labor-market. The employment print is expected to show a pick in job growth. Data for the report was collected prior to many of the federal cuts.
“On any other day, today’s modest jobless claims number may have offset some of the concerns raised by yesterday’s weak ADP report,” said Chris Larkin at E*Trade from Morgan Stanley. “But right now, trade policy is dominating market action. Until the tariff smoke clears, it could continue to be a bumpy ride for traders and investors.”
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Key events this week:
Eurozone GDP, Friday
US jobs report, Friday
Fed Chair Jerome Powell gives keynote speech at an event in New York hosted by University of Chicago Booth School of Business, Friday
Fed’s John Williams, Michelle Bowman and Adriana Kugler speak, Friday
Some of the main moves in markets:
Stocks
The S&P 500 fell 0.9% as of 10:56 a.m. New York time
The Nasdaq 100 fell 1.2%
The Dow Jones Industrial Average fell 0.5%
The Stoxx Europe 600 was little changed
The MSCI World Index fell 0.5%
Bloomberg Magnificent 7 Total Return Index fell 1.2%
The Russell 2000 Index fell 0.8%
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