Gold Silver Reports (GSR) – U.S. stocks erased deep losses to end the day mixed as White House officials left open the possibility that President Donald Trump’s tariffproposals will spare neighbors from the most severe penalties. The dollar and Treasuries erased gains.
The S&P 500 Index was little changed after falling as much as 1 percent during a session marked by thintrading. Investorsspooked by the departure of pro-trade adviser Gary Cohn took solace in comments from WhiteHouse Council of Economic Advisers Chairman Kevin Hassett that indicated the trade policy is not yet finalized.
Trade angst still set the tone in U.S. equities, with multinationals in the DowJones Industrial Average leading declines, while domestically focused small caps paced gains. Treasuries pared an advance to trade little changed, while Bloomberg’s dollar index fell versus the Canadiandollar after White House spokesperson Sarah Sanders said “there are potential carve outs” for the northern nation in the coming tariffs.
Elsewhere, crude fell toward $61 a barrel in New York. Investors also have their sights fixed on upcoming centralbank decisions in Europe and Japan, ahead of Friday’s U.S. jobsreport.
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“I think markets are taking a wait and see attitude. But I do believe markets will sell-off a lot more if it becomes clear that we are going to start tariffs.” Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance, said by phone. “And if other countries are going to retaliate and people start to wonder how far this is going to go, I think that then there will be more of an impact on the market.”
While the imposition of severe levies on steel and aluminum may come as soon as this week, speculation remains that the tariffs may not spark a broader trade conflagration. The EuropeanUnion has said it will retaliate in kind, while China has so far remained largely quiet. At the same time, Republicanleaders in Congress have urged Trump to target only specific items and countries, adding to hope that a broader crackdown on trade will be avoided. – Goldman Neal Bhai Reports
