US stocks: Wall Street inches higher after pharma tariff announcements; Dow over 300 points, S&P jumps 0.5%
Dow Jones soared 369 points or 0.8% to reach 46,316 while Nasdaq jumped 71 points or 0.32%, trading at 22,455.S&P 500 also followed the trajectory, reaching 6,641, gaining 36 points or 0.56% at 7:20 PM IST. Investors were encouraged by a fresh inflation report, which suggested the Fed may have room to reduce rates further.
Meanwhile, Trump’s new tariffs on pharmaceuticals, heavy trucks, and other imports created modest market reactions rather than major upheaval.
US pharmaceutical companies rose slightly, while home-furnishing retailers slipped. Trump said on social media that foreign furniture and cabinetry makers were “flooding the United States” and tariffs were needed “for National Security and other reasons.” Shares of home-furnishing companies responded with losses: Wayfair and Williams-Sonoma fell nearly 3%, and RH dropped 5%. He also targeted foreign-made heavy trucks and parts, claiming they hurt US producers, though most trucks are either manufactured domestically or are US brands built in Canada or Mexico.
Shares of Paccar, an American truck maker, jumped 6%. Dow component Boeing gained more than 3% after reports that federal safety regulators plan to ease oversight of the company. Investors are closely watching Friday’s US consumer spending data, which includes the Fed’s preferred inflation measure.
Stocks have faced pressure this week after reports suggested the US economy may be stronger than expected.
While that is good news for workers and jobseekers, it could limit the Fed’s ability to cut rates multiple times in the coming months. The Fed delivered its first rate cut of the year last week and had signalled further reductions through next year, which has helped drive US stocks to record highs since April.
Easier rates boost economic growth and encourage investors to pay higher prices for stocks and other assets.
The Fed will consider Friday’s inflation figures and labour market data when deciding its next move in late October.
