Stocks Fluctuate as Traders Await Next Moves in Trump Trade War
- Markets experienced mixed movements on May 28, 2025, as Wall Street and London exchanges remained closed for a holiday while Asian indexes fluctuated and traders awaited key policy updates in Tokyo and the US.
- Market volatility increased following US President Trump's renewed warning of imposing tariffs as high as 50 percent on imports from the European Union, amid ongoing uncertainty about the Federal Reserve's upcoming policy decisions and the broader trade policy landscape, which have influenced investor confidence.
- Japan's central bank governor, Kazuo Ueda, signaled possible further interest rate hikes dependent on economic performance and noted a downward revision of economic and inflation outlook due to trade policy uncertainties.
- Chris Weston of Pepperstone highlighted concerns that higher US deficits and expectations of increased Treasury issuance have pushed up term premiums, causing capital to move away from the dollar as tariff risks and growth worries linger.
- As traders awaited the Federal Reserve’s May meeting minutes and inflation gauge data later in the week, markets remained cautious with the dollar trending lower and investors sensitive to shifting trade war developments and economic outlooks.
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The Trade War is Eroding America’s Soft Power
The debate over free trade should include more than the costs of Trump’s tariffs versus the value of cheaper stuff. by Eric Boehm Reason.com The direct cost of President Donald Trump’s trade war will be borne by American consumers and businesses—of that, there should no longer be much debate. But trade wars also come with indirect costs and unforeseen consequences. Some of those show up on balance sheets in the form of lower profits, losses in t…
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Leaning Left10Leaning Right10Center15Last UpdatedBias Distribution43% Center
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