Markets drift amid investor caution as Trump's tariffs take effect


NEW YORK () President Donald Trump’s sweeping global tariffs have already begun to hit Americans’ wallets. The tariffs, which have raised import taxes to their highest levels since the Great Depression, have sent ripples through Wall Street, with markets drifting to a mixed finish.

The S&P 500 slipped 0.1% after briefly climbing to the cusp of its all-time high Thursday morning. The Dow Jones Industrial Average dropped 224 points, or 0.5%, and the Nasdaq composite rose 0.3% to a record.

Worries that Trump’s tariffs are damaging the economy have grown, particularly after last week’s worse-than-expected report on the job market.

But hopes for coming cuts to interest rates by the Federal Reserve and a torrent of stronger-than-expected profit reports from big U.S. companies are helping to offset the concerns at least for now.

Early Friday morning, markets were expected to continue to cool, pricing in a slower and more manageable tariff range for companies, unlike the rapid swings seen on “Liberation Day.”

One major trade deal remains in limbo: the agreement with China. With a Tuesday deadline looming, markets are likely to react more sharply if no progress is made by then.

Trump expands 401(k) options, cracks down on ‘debanking’

On Thursday, Trump signed two executive orders aimed at the financial sector, with Wall Street sharing mixed reactions.

In one order, Trump aims to make alternative assets like private equity, real estate and cryptocurrency more accessible to 401(k) retirement savers.

If implemented effectively, this could increase everyday investors’ access to investment vehicles that were primarily limited to institutions and high-net-worth investors, benefiting long-term retirement planners.

The second order increases federal scrutiny over whether banks deny services to consumers and businesses based on political or religious beliefs a response to conservative concerns over “debanking.”

The Associated Press contributed to this report.

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