U.S. stocks slipped slightly on Thursday, giving back some of the strong gains from the previous session as investors weighed new tariff announcements from former President Donald Trump and fresh labor market data.
As of 09:35 ET, Dow Jones futures dropped 80 points (0.2%), S&P 500 futures fell 4 points (0.1%), and Nasdaq 100 futures edged down 6 points (0.1%).
On Wednesday, major indexes rallied, with the Nasdaq Composite hitting a record close after Nvidia (NASDAQ: NVDA) briefly reached a $4 trillion market cap—becoming the first company to do so.
Tariff Concerns Resurface Following Brazil Dispute
Trump released additional letters outlining new tariffs on imports from several countries, with Brazil receiving particularly harsh treatment. He proposed a 50% tariff on all Brazilian imports starting August 1, citing dissatisfaction over the treatment of former Brazilian President Jair Bolsonaro, a political ally.
Brazil’s President Luiz Inácio Lula da Silva condemned the move and pledged a proportional response, raising fears of a potential trade conflict between the U.S. and Brazil.
Trump also confirmed a 50% tariff on copper imports, effective August 1, following through on a prior threat.
Labor Market Remains Strong
Weekly jobless claims came in at 227,000, below expectations of 236,000, signaling continued strength in the labor market.
Meanwhile, minutes from the Federal Reserve’s June meeting indicated that only a few policymakers supported a near-term rate cut. Most members favored a cautious approach, particularly given the inflationary risks posed by new tariffs.
Trump has repeatedly urged the Fed to lower interest rates, warning that high borrowing costs could hurt the economy.
Corporate News: Ferrero Eyes Kellogg Deal, Delta Lifts Outlook
Shares of WK Kellogg (NYSE: KLG) surged after a Wall Street Journal report said Italian confectioner Ferrero is nearing a $3 billion acquisition of the cereal maker. Ferrero, known for brands like Nutella and Ferrero Rocher, could finalize the deal as soon as this week.
Delta Air Lines (NYSE: DAL) stock also rose after the company reinstated its full-year guidance, citing strong business momentum and record June-quarter revenue, despite recent trade uncertainty.
Oil Prices Decline on Trade Concerns
Crude prices fell Thursday amid heightened trade tensions and strong U.S. gasoline demand.
At 09:35 ET, Brent crude was down 1.8% at $68.94 per barrel, while WTI dropped 2.1% to $66.94.
While gasoline demand rose 6% to 9.2 million barrels per day last week, according to the EIA, rising U.S. crude inventories and cooling geopolitical tensions—such as the ongoing Israel-Iran ceasefire—have weighed on prices.
OPEC+ is reportedly considering a pause in further output increases after its planned September production hike. According to Bloomberg, the group may delay the reversal of an additional 1.66 million barrels per day in cuts.
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