US stocks showed mixed performance on Thursday as investors weighed President Donald Trump’s threat to impose unilateral tariffs on trading partners within the next two weeks.
The announcement added to ongoing trade uncertainty, leaving markets cautious despite some encouraging economic data.
The S&P 500 and Nasdaq Composite each rose slightly by 0.1%, while the Dow Jones Industrial Average fell by 85 points, or 0.2%, dragged lower by a 4% decline in Boeing shares following a crash involving an Air India Dreamliner.
President Trump’s remarks on Wednesday suggested that unless progress is made in trade talks, the US will begin setting new tariff rates, even on countries currently negotiating with Washington.
“We’re dealing with Japan, South Korea, the EU — we’ll be sending letters in a week or two laying out our terms,” Trump said, while maintaining that an extension beyond the July 8 deadline “may not be necessary.”
Markets had opened lower following the president’s comments, reflecting investor unease about further trade disruptions. The US Dollar Index dropped to 97.60, its lowest level since February 2022, as currency markets reacted to the potential for global trade realignment.
Adding to investor anxiety was news from the Middle East. Crude oil prices fell about 2% amid rising tensions between the US and Iran, just ahead of renewed nuclear talks. Reports also confirmed that the US was relocating some personnel from the region as a precautionary measure.
Despite these global developments, some US economic indicators remained steady. The May Producer Price Index (PPI) rose just 0.1%, coming in below economists’ expectations and reinforcing a broader trend of subdued inflation. Meanwhile, weekly jobless claims remained flat at 248,000, although continuing claims rose to their highest level since late 2021.
In corporate news, Oracle shares jumped 11% after the company reported better-than-expected earnings and projected stronger growth in its cloud business. Conversely, Boeing’s stock decline weighed on the Dow, following the Air India crash that left investors seeking clarity on the incident’s cause.
Elsewhere, gold prices surged to their highest level since early June, with the VanEck Gold Miners ETF rising 2%, suggesting a flight to safe-haven assets amid geopolitical uncertainty. Shares in companies like Anglogold Ashanti and Newmont led the gains.
Looking ahead, analysts say markets are likely to remain volatile in the short term.
“Trade uncertainty could continue to create downside pressure, but it may also generate selective buying opportunities,” said Scott Wren, senior strategist at Wells Fargo Investment Institute.
With less than a month until the tariff deadline, markets will be closely watching for any concrete outcomes from ongoing trade talks — particularly those involving China, which reached a tentative framework with US officials earlier this week during meetings in London. However, that agreement still requires formal approval from both President Trump and Chinese President Xi Jinping.
