By US stocks fell Thursday after President Donald Trump warned he could impose unilateral tariffs on trading partners within two weeks, rattling investor sentiment.
The Dow Jones Industrial Average dropped 246 points, or nearly 0.6%, weighed down by a sharp decline in Boeing shares.
The S&P 500 slipped 0.3%, while the Nasdaq Composite also lost 0.3%.
Boeing fell 5% after one of its 787 Dreamliners, operated by Air India, crashed shortly after takeoff with 242 people on board.
The incident raised fresh safety concerns around the aircraft model.
In contrast, Oracle shares surged more than 9% after the software giant reported fiscal fourth-quarter results that topped estimates on both revenue and profit.
The company also gave upbeat guidance on continued growth in its cloud business.
Investors were also digesting new economic data.
The May producer price index — a gauge of final demand prices — rose just 0.1% following a 0.2% decline in April. Economists had expected a 0.2% increase, reinforcing expectations that inflation pressures remain muted.
Trump tariff truce to be extended?
Markets remain focused on global trade tensions. Trump said Wednesday he was open to extending a July 8 deadline for concluding trade negotiations with key partners, but suggested extensions might be unnecessary.
“I would, but I don’t think we’re going to have that necessity. We made a great deal with China,” Trump told reporters.
“We’re dealing with Japan, we’re dealing with South Korea. We’re dealing with a lot of them.”
Talks between US and Chinese officials this week in London resulted in a framework for continued discussions.
While details remain vague, both sides agreed to ease certain restrictions around rare earth metals and foreign student access.
Thursday’s losses extend a slight pullback from Wednesday, when the S&P 500 and Nasdaq snapped a three-day winning streak. Despite recent declines, the S&P 500 remains just over 2% below its February record high.
Treasury Secretary Scott Bessent also indicated Wednesday that the 90-day pause on reciprocal tariffs could be extended for 18 of the United States’ major trading partners currently “negotiating in good faith.”
Testifying before the House Ways and Means Committee, Bessent said it was “highly likely” that the US would “roll the date forward to continue good faith negotiations” with those countries.
His remarks mark a shift in the administration’s stance, as officials had previously insisted that no extension would be granted without concrete terms of an agreement in place.
The tariff pause, originally announced on April 9, was aimed at de-escalating trade tensions while talks continued.
Bessent’s comments suggest a more flexible posture from the White House as it seeks to sustain momentum in ongoing negotiations.
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