Trading on Wall Street displayed a mixed performance as markets approached the conclusion of another record-setting week, with traders closely watching the upcoming Federal Reserve interest rate decision scheduled for Wednesday. Futures for the S&P 500 remained unchanged, while the Dow Jones Industrial Average saw a decline of 0.2%. In contrast, Nasdaq futures recorded a slight increase of 0.1%.
The markets reacted to a varied set of U.S. economic data released on Thursday. Many investors are anticipating that the Federal Reserve will implement a cut in interest rates next week, which they believe could provide a much-needed boost to the economy. Despite this, the Fed has been cautious about reducing rates, largely due to concerns that the tariffs imposed by former President Donald Trump could worsen inflation.
Trump’s administration has intensified pressure on the Fed, with threats to dismiss Fed Chair Jerome Powell and escalating attempts to remove Governor Lisa Cook, whom Trump accused of mortgage fraud. Following a failed attempt to dismiss Cook on August 25, a federal judge ruled earlier this week that her removal was illegal, resulting in her reinstatement to the Fed’s board.
In corporate news, shares of RH, the company formerly known as Restoration Hardware, plummeted by 7% after it missed sales and profit expectations and lowered its annual guidance, attributing these setbacks to the impacts of tariffs. Meanwhile, Microsoft experienced a modest rise as European Union regulators accepted proposed changes to its Teams platform, signaling an end to a protracted antitrust investigation. Microsoft shares climbed 1% before the market opened following the announcement.
Over in Europe, midday trading revealed a slight downturn, with Germany’s DAX declining by 0.3%, Paris’s CAC 40 dropping 0.5%, while Britain’s FTSE 100 managed a small gain of nearly 0.3%. In Asia, Japan’s Nikkei 225 concluded the day up 0.9% at 44,768.12, marking fresh record levels led by semiconductor firm Tokyo Electron, as well as Sony Group and Fast Retailing.
Chinese markets showed mixed activity; Hong Kong’s Hang Seng index rose 1.2% to 26,388.16, driven by gains in tech shares amid optimism surrounding artificial intelligence, alongside rising property stocks following government support to address financial shortfalls faced by local authorities. Conversely, the Shanghai Composite index edged down 0.1% to 3,870.60.
In South Korea, the Kospi increased by 1.5% to 3,395.54, while Australia’s S&P/ASX 200 gained 0.7% to reach 8,864.90. Notable rises were also seen in India’s BSE Sensex, which was up by 0.5%, and Taiwan’s Taiex, which climbed 1%.
On the energy front, benchmark U.S. crude prices saw a 1.5% uptick, reaching $63.29 per barrel, signaling a positive trend in commodity trading as the market anticipates the forthcoming decisions from the Federal Reserve.
