By Matt Wirz & Katy Barnato
President Trump spoke with Xi Jinping at the U.S. president's request, state media in China said, offering some hope their trade standoff could be resolved.
Trump said in a social media post after the call that it resulted in a "very positive conclusion." He said Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick would hold a follow-up meeting with their Chinese counterparts.
Stocks were up and down throughout. Treasury yields rebounded after declining at the open. Tesla shares declined after Trump lashed out at Elon Musk.
Economic data was mixed. The trade deficit, a key Trump issue, fell to $61.6 billion in April, an even steeper drop than economists forecast. It had ballooned to a record in March as businesses rushed to stockpile ahead of tariffs.
Initial jobless claims hit the highest level since October last week, according to the Labor Department's jobless claims report.
In Frankfurt, the ECB cut rates for the eighth time in about a year, reflecting trade tensions, a stronger euro and weaker inflation. The widely expected move expands the gap in borrowing costs between the eurozone and the U.S., where the Federal Reserve has eased more cautiously.
Germany's new chancellor is meeting with Trump on Thursday. Friedrich Merz is the latest of several European Union leaders who have traveled to the White House in recent weeks.
While investors have taken recent tariff news in stride, BlackRock Chief Executive Larry Fink said he expects the economy will feel the impact of trade levies later this year. "If the tariffs are instituted over the next five months, I think we're going to see very elevated inflation," Fink said Thursday at a conference in New York.
Meanwhile, earnings season is nearing an end, with results from AI chip maker Broadcom due after the bell. Some 78% of S&P 500 companies have reported higher-than-expected earnings, FactSet data through Friday shows. But for the small proportion that have guided investors on this quarter, weak outlooks outnumber strong ones.
In recent trading:
Stocks were mixed after zigzagging on either side of noon.
The WSJ Dollar Index weakened.
Treasury yields were broadly steady. Bond yields started to rise after rallying Wednesday, when 10-year yields dropped nearly 0.1 percentage point.
European stocks mostly edged higher. Asian mostly gained, though Japan's Nikkei 225 retreated.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires