After coming under pressure early in the session, stocks have regained ground over the course of the trading day on Thursday. The major averages have climbed well off their worst levels of the day and into positive territory.
Currently, the major averages are posting modest gains. The Nasdaq is up 51.79 points or 0.3 percent at 17,950.81, the S&P 500 is up 13.04 points or 0.2 percent at 5,725.24 and the Dow is up 21.60 points or 0.1 percent at 42,476.39.
The early weakness on Wall Street came amid ongoing concerns about President Donald Trump’s trade policies after he announced plans to impose 25 percent tariffs on auto imports.
Selling pressure was somewhat subdued, however, as the news may already have been priced into the markets after the White House revealed Trump would be making the announcement during the trading day on Wednesday.
Trump also told reporters on Wednesday that the reciprocal tariffs set to take effect on U.S. trade partners next week will be “very lenient.”
However, Trump also threatened in a Truth Social post early this morning that he would impose far larger tariffs than currently planned “if the European Union works with Canada in order to do economic harm to the USA.”
The subsequent rebound by the markets may partly have reflected a positive reaction to the latest U.S. economic data, including a Commerce Department report showing the economy grew slightly faster than previously estimated in the fourth quarter of 2024.
The Commerce Department said gross domestic product surged by 2.4 percent in the fourth quarter compared to the previously reported 2.3 percent jump. Economists had expected the pace of GDP growth to be unrevised.
A separate report released by the National Association of Realtors showed pending home sales saw a significant rebound in the month of February after plunging to an all-time low in January.
Sector News
Gold stocks have moved sharply higher over the course of the session, driving the NYSE Arca Gold Bugs Index up by 2.4 percent.
The rally by gold stocks comes amid a substantial increase by the price of the precious metal, with gold for April delivery surging $42.90 to $3,065.40 an ounce.
Significant strength has also emerged among telecom stocks, as reflected by the 1.2 percent gain being posted by the NYSE Arca North American Telecom Index.
Biotechnology and retail stocks have also moved to the upside, while semiconductor and networking stocks continue to see notable weakness.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index slid by 0.6 percent, while China’s Shanghai Composite Index inched up by 0.2 percent and Hong Kong’s Hang Seng Index rose by 0.4 percent.
Meanwhile, the major European markets have all moved to the downside on the day. While the German DAX Index is down by 0.6 percent, the U.K.’s FTSE 100 Index and the French CAC 40 Index are both down by 0.4 percent.
In the bond market, treasuries have moved lower in reaction to the latest U.S. economic data. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.7 basis points at 4.375 percent.
U.S. Stocks Move Modestly Higher After Early Move To The Downside
2025-03-27 15:25:28
