Oil set for steepest weekly losses since June as tariffs cloud demand outlook

Oil prices were little changed in early Asian hours on Friday, but were headed for their steepest weekly losses since late-June, as investors expressed concern over the impact to the global economy from tariffs that kicked into effect on Thursday.

Brent crude futures were down three cents to USD 66.40 a barrel at 0050 GMT, on track to decline more than 4% week-over-week. US West Texas Intermediate crude futures were down six cents, or 0.1%, to USD 63.82 a barrel, set to fall more than 5% on a weekly basis.

Higher US tariffs against a host of trade partners went into effect on Thursday. The tariffs raised concerns of weaker economic activity, which would hit demand for crude oil, ANZ Bank analysts said in a note.

Oil prices were already reeling from the OPEC+ group’s decision last weekend to fully unwind its largest tranche of output cuts in September, months ahead of target.

At Thursday’s close, WTI futures had dropped for six consecutive sessions, matching a declining streak last recorded in December 2023. If prices settle lower on Friday, it will be the longest streak since August 2021.

Adding more pressure on the oil market, the Kremlin on Thursday confirmed Russian President Vladimir Putin would meet US President Donald Trump in the coming days, raising expectations of a diplomatic end to the war in Ukraine.

Additional US tariffs against India for buying Russian crude oil helped limit the decline in oil prices to some extent. The move, however, is unlikely to reduce the flow of Russian oil to outside markets in a material way, StoneX analysts wrote to clients on Thursday.

Trump on Wednesday also said China, the largest buyer of Russian crude oil, could be hit with tariffs similar to those being levied against Indian imports.

(Reporting by Shariq Khan in New York; Editing by Tom Hogue)

S&P 500 eases with Eli Lilly; Nasdaq manages record closing high

NEW YORK – The Dow and S&P 500 eased on Thursday, as shares of Eli Lilly dropped after data from its oral weight loss drug disappointed, while the Nasdaq eked out a record closing high.

Just before the session’s end, US President Donald Trump said he will nominate Council of Economic Advisors Chairman Stephen Miran to serve out the remaining term of Federal Reserve Governor Adriana Kugler.

Miran is due to serve in the role until January 31, 2026, while Trump continues a search for a permanent replacement.

Earlier, investors digested a Bloomberg report that Fed Governor Christopher Waller was Trump’s top candidate for the US central bank’s chair post.

Trump has been critical of current Chair Jerome Powell for holding off on cutting borrowing costs.

Eli Lilly, which also raised its full-year profit and sales forecast, fell after the orforglipron drug data. The stock ended down 14.1%.

Shares of Fortinet also fell, with the stock finishing 22% lower, after the cybersecurity firm gave a revenue forecast below Wall Street estimates.

“The market rally is beginning to look a little bit tired here. We ran up on earnings, and of course, the market was basically ignoring a lot of the tariff news,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

Trump’s higher tariffs on imports from dozens of countries kicked in on Thursday, raising the average US import duty to its highest in a century.

The Dow Jones Industrial Average fell 224.48 points, or 0.51%, to 43,968.64, the S&P 500 lost 5.06 points, or 0.08%, to 6,340.00 and the Nasdaq Composite gained 73.27 points, or 0.35%, to 21,242.70.

The S&P 500 has hit 15 record closing highs this year, while the Nasdaq has posted 17 all-time closing highs so far in 2025.

Among other decliners, chipmaker Intel was down 3.1% after Trump called for the immediate resignation of new Intel CEO Lip-Bu Tan, calling him “highly conflicted” due to his ties to Chinese firms.

Helping the Nasdaq, Apple shares rose 3.2% after the latest tariff salvo from Trump largely exempted industry heavyweights from his threat to impose 100% levy on chips and semiconductors.

The US president announced a tariff of about 100% on imports of semiconductors, but said it would not apply to companies that are manufacturing in the US or have committed to do so.

Rate cut expectations remained largely the same after the day’s data on the labor market.

Weekly initial jobless claims rose 7,000 to a seasonally adjusted 226,000, the highest level since the week ended July 5 and slightly above the 221,000 estimate of economists polled by Reuters, according to the data.

Market expectations for a September rate cut of at least 25 basis points from the Fed stood at 93.2%, down slightly from the 94.6% in the prior session and well above the 37.7% from a week ago, according to CME’s FedWatch Tool.

Declining issues outnumbered advancers by a 1.01-to-1 ratio on the NYSE. There were 232 new highs and 80 new lows on the NYSE.

On the Nasdaq, 1,944 stocks rose and 2,622 fell as declining issues outnumbered advancers by a 1.35-to-1 ratio.

Volume on US exchanges was 17.40 billion shares, compared with the 18.23 billion average for the full session over the last 20 trading days.

(Additional reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru; Editing by Maju Samuel and Aurora Ellis)

Oil prices fall as OPEC+ output hikes counter Russia disruption concerns

Oil prices slipped on Tuesday as rising OPEC+ supply and worries of weaker global demand countered concern about US President Donald Trump’s threats to India over its Russian oil purchases.

Brent crude futures settled USD 1.12, or 1.63%, lower to USD 67.64 a barrel, while US West Texas Intermediate crude slipped USD 1.13, or 1.7%, to USD 65.16. Both benchmarks settled to their lowest in five weeks.

The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.

“The significant increase in OPEC supplies is weighing on the market,” said Andrew Lipow, president of Lipow Oil Associates.

Also weighing on prices, US services sector activity unexpectedly flatlined in July with little change in orders and a further weakening in employment even as input costs climbed by the most in nearly three years, underscoring the ongoing drag of uncertainty over the Trump administration’s tariff policy on businesses.

“The market now is going to see if India and China agree to substantially reduce the purchases of Russian crude oil, thereby looking for alternative supplies elsewhere,” Lipow said.

Trump on Tuesday again threatened higher tariffs on Indian goods over the country’s Russian oil purchases over the next 24 hours. Trump also said declining energy prices could pressure Russian President Vladimir Putin to halt the war in Ukraine. New Delhi called Trump’s threat “unjustified” and vowed to protect its economic interests, deepening a trade rift between the two countries.

Oil’s move since Trump’s threat indicates that traders are skeptical of a supply disruption happening, John Evans of oil broker PVM said in a report. He questioned whether Trump would risk higher oil prices.

“I’d call it a stable market for oil,” said Giovanni Staunovo, an analyst at UBS. “Assume this likely continues until we figure out what the US president announces in respect to Russia later this week and how those buyers would react.”

India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources.

US crude inventories fell by 4.2 million barrels last week, sources citing American Petroleum Institute figures said on Tuesday. The US Energy Information Administration is due to release weekly US inventory data on Wednesday, respectively.

(By Nicole Jao; Additional reporting by Enes Tunagur and Alex Lawler in London, Anjana Anil in Bengaluru and Siyi Liu in Singapore; Editing by Paul Simao and Nick Zieminski)

Gold hits near 2-week peak, investors focus on Fed appointments

Gold prices climbed to a near two-week high on Tuesday, supported by growing expectations of US interest rate cuts, while investors awaited President Donald Trump’s decision on Federal Reserve appointments.

Spot gold was up 0.2% at USD 3,380.20 per ounce by 01:55 p.m. ET (1755 GMT), after hitting its highest level since July 24 earlier. US gold futures settled 0.2% higher at USD 3,434.7.

The dollar edged lower, making greenback-priced gold more affordable for foreign currency holders.

Markets are currently pricing in two rate cuts by year-end, beginning in September, after Friday’s unexpectedly weak June hiring data, following which Trump fired the commissioner of the US Bureau of Labor Statistics (BLS).

“The market is still reeling from last week’s data-heavy week alongside the Trump administration’s decision to replace the head of the BLS,” said Daniel Ghali, commodity strategist at TD Securities.

“Both of these things play into gold’s strength, and certainly corroborate our view that the US dollar is partly losing its store of value function.”

Gold is used as a safe store of value during uncertainty, and thrives in a low-interest-rate environment as it yields no interest.

Meanwhile, Trump said he would announce decisions soon on a short-term replacement for Federal Reserve Governor Adriana Kugler, who announced her resignation on Friday, as well as his pick for the next Fed chair.

Spot silver rose 1.2% to USD 37.85 per ounce, its highest level since July 30.

“I’m more bullish on silver than gold right now. I think silver could break above USD 40, and if it does, the next target would likely be around USD 42,” said Bob Haberkorn, senior market strategist at RJO Futures.

Platinum lost 1% to USD 1,316.35 and palladium shed 2.1% to USD 1,181.21.

South Africa-based miner Sibanye-Stillwater has asked the United States to consider a tariff on Russian palladium imports to support the long-term viability of US supplies.

(Reporting by Sarah Qureshi in Bengaluru; Editing by Vijay Kishore and Sahal Muhammed)

Wall Street ends lower as investors consider tariff impact on results, economy

US stocks ended lower on Tuesday as investors weighed the impact of tariffs after Yum Brands and other companies cited trade duties in their results or outlooks.

The US trade deficit narrowed in June on a sharp drop in consumer goods imports, and the trade gap with China shrank to its lowest in more than 21 years.

In addition, a measure of activity in the US services sector hit stall-speed in July, with businesses saying new import taxes are pushing costs higher.

Shares of KFC parent Yum Brands fell 5.1% after the company missed estimates for the second quarter, as steep trade duties restricted consumer spending.

Caterpillar warned US tariffs would pose significant challenges in the second half of the year and cost it up to USD 1.5 billion in 2025, but its shares ended up 0.1%.

The comments come at the tail end of the US second-quarter earnings season, in which about 80% of reports from S&P 500 companies are beating analyst profit expectations.

“If you look at results, they are trending above low-bar expectations,” said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis, Minnesota.

“The impact of tariffs remains a work in progress. We’re not seeing any meaningful impact on company profitability with tariffs. We do know, however, that they loom.”

The Dow Jones Industrial Average fell 61.90 points, or 0.14%, to 44,111.74, the S&P 500 lost 30.75 points, or 0.49%, to 6,299.19 and the Nasdaq Composite lost 137.03 points, or 0.65%, to 20,916.55.

Trump on Tuesday said the US could impose a “small tariff” on pharmaceutical imports before increasing the rate subsequently. He also signaled an announcement on tariffs on semiconductors and chips in the “next week or so.”

“Today’s market action reflects investors that are merely in pause mode,” Sandven said, noting that the backdrop for equities remains constructive for the year.

The S&P 500 and Nasdaq hit a string of record highs recently, and the S&P 500 remains up 7.1% for the year so far.

In other results-related news, Marriott International cut its full-year forecast for revenue growth and profit and signaled slowing travel demand and economic uncertainties. Its stock closed up 0.2%.

While the earnings period is winding down, investors look forward to more key results on Wednesday, with both Walt Disney and McDonald’s due to report.

Advancing issues outnumbered decliners by a 1.27-to-1 ratio on the NYSE. There were 158 new highs and 67 new lows on the NYSE.

On the Nasdaq, 2,216 stocks rose and 2,365 fell as declining issues outnumbered advancers by a 1.07-to-1 ratio.

Volume on US exchanges was 16.29 billion shares, compared with the roughly 18.33 billion average for the full session over the last 20 trading days.

(By Caroline Valetkevitch; Additional reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru; Additional reporting by Twesha Dikshit; Editing by Maju Samuel and Aurora Ellis)

Indexes post biggest daily percentage gains since May 27 in rebound from Friday selloff

NEW YORK – All three major US stock indexes scored their biggest daily percentage increases since May 27 on Monday as investors sought bargains after the previous session’s selloff and ramped up bets for a September interest rate cut after Friday’s weaker-than-expected jobs data.

Tesla shares rose 2.2% after the electric vehicle maker granted CEO Elon Musk 96 million shares worth about USD 29 billion.

Friday’s selloff followed bleak July jobs data that was accompanied by steep downward revisions for May and June.

“Today is just a little bit of dip-buying. It does show a pretty healthy sign of folks out there looking for an opportunity to get in,” said Mike Dickson, head of research and quantitative strategies at Horizon Investments in Charlotte, North Carolina.

“It’s a little concerning in the sense the labor market … definitely appears to be weaker than people expected. A bit of an offset to that is the renewed rate cut expectations. There’s a high probability we’re getting a September cut.”

Odds for a September rate cut now stand at about 84%, according to CME Fedwatch. Market participants see at least two quarter-point cuts by the end of this year.

The S&P 500 and Nasdaq had hit a string of record highs recently.

The Dow Jones Industrial Average rose 585.06 points, or 1.34%, to 44,173.64, the S&P 500 gained 91.93 points, or 1.47%, at 6,329.94 and the Nasdaq Composite climbed 403.45 points, or 1.95%, to 21,053.58.

Investors were still digesting US President Donald Trump’s firing of Bureau of Labor Statistics Commissioner Erika McEntarfer on Friday as he accused her of faking the weak jobs numbers.

Also on Friday, Fed Governor Adriana Kugler unexpectedly resigned, which could open the door for changes from Trump. Trump has been pushing the Fed to cut rates.

On the trade front, Trump said on Monday he will substantially raise tariffs on goods from India over its Russian oil purchases, while New Delhi said it would take measures to safeguard its interests and called its targeting by the US president “unjustified.”

Second-quarter US earnings season is winding down, but investors still look forward to reports this week from companies like Walt Disney.

Among rising shares on Monday, Spotify gained 5% as the music streaming platform announced plans to raise the monthly price of its premium individual subscription in select markets from September.

Joby Aviation jumped 18.8% after the company said it will acquire helicopter ride-share company Blade Air Mobility’s passenger business for up to USD 125 million. Blade Air shares rose 17.2%.

Among the day’s decliners, Class A shares of Warren Buffett’s Berkshire Hathaway fell 2.7% as investors took in a USD 3.8 billion write-down and a dip in quarterly operating profit that the firm disclosed on Saturday.

Advancing issues outnumbered decliners by a 4.48-to-1 ratio on the NYSE. There were 136 new highs and 51 new lows on the NYSE.

On the Nasdaq, 3,487 stocks rose and 1,090 fell as advancers outnumbered decliners by a 3.2-to-1 ratio.

Volume on US exchanges was 15.05 billion shares, compared with the 18.37 billion average for the full session over the last 20 trading days.

(Reporting by Caroline Valetkevitch; Additional reporting by Nikhil Sharma and Pranav Kashyap in Bengaluru; Editing by Maju Samuel and Richard Chang)

Gold extends gains on US rate cut expectations

Gold prices rose for a third straight session on Monday after last week’s economic data fueled expectations of interest rate cuts by the US Federal Reserve.

Spot gold rose 0.3% to USD 3,372.15 per ounce as of 0146 p.m. ET (17:46 GMT), its highest level since July 24. US gold futures settled 0.8% higher at USD 3,426.4.

“The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That, coupled with the headwinds of inflation, I think, is pretty bullish for gold,” said Daniel Pavilonis, senior market strategist at RJO Futures.

Last week, data showed that US employment growth was weaker than expected in July, while the nonfarm payrolls count for the prior two months was revised down by a massive 258,000 jobs, suggesting a sharp deterioration in labor market conditions. Additionally, the Fed’s preferred gauge, US PCE inflation data, increased 0.3% in June after an upwardly revised 0.2% gain in May as tariffs started raising the cost of some goods.

According to the CME FedWatch tool, traders now see an 87.8% chance of a September rate cut, up from just over 63% a week ago.

Bullion typically performs well in a low-interest-rate environment and is regarded as a hedge against inflation.

The tariffs US President Donald Trump imposed last week on scores of countries are likely to stay in place rather than be cut as part of continuing negotiations, Trade Representative Jamieson Greer said in comments aired on Sunday.

Trump set rates including a 35% duty on many goods from Canada, 50% for Brazil, 25% for India, 20% for Taiwan, and 39% for Switzerland, according to a presidential executive order.

Elsewhere, spot silver was up 0.9% at USD 37.35 per ounce.

Platinum rose 1.3% to USD 1,332.20, while palladium slipped 1.6% to USD 1,188.90 after reaching a three-week low earlier in the session.

Palladium prices still has some upside and are likely to see a rebound with downside support at USD 1,180/oz and upside breakout at USD 1,230, Pavilonis said.

(Reporting by Sarah Qureshi in Bengaluru; Editing by Sahal Muhammed and Tasim Zahid)

Oil falls as OPEC+ output hike adds to oversupply concerns

NEW YORK – Oil prices fell to their lowest levels in a week on Monday after OPEC+ agreed to another large output increase in September, adding to oversupply concerns after US data showed lacklustre fuel demand in the top-consuming nation.

Brent crude futures fell 91 cents, or 1.3%, to settle at USD 68.76 a barrel, while US West Texas Intermediate crude declined by USD 1.04, or 1.5%, to close at USD 66.29 a barrel.

Both contracts settled at their lowest in a week, after declining close to 3% on Friday.

The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day (bpd) for September.

The latest in a series of accelerated output increases aimed at capturing market share was in line with market expectations and marks a full and early reversal of the group’s largest tranche of output cuts, amounting to about 2.5 million bpd, or about 2.4% of global demand.

While the group cited healthy market fundamentals to back its decision, data released by the US government last week showed the weakest gasoline demand in May, the start of the country’s summer driving season, since the COVID-19 pandemic of 2020.

The data also showed US oil production at a monthly record high in May, adding to global oversupply concerns.

Oil traders are now hedging for the possibility of further supply increases from OPEC+, with potential discussions to unwind a further 1.65 million bpd of cuts at the group’s next meeting on September 7 adding pressure to oil prices.

“OPEC+ retains a substantial amount of spare production capacity, and markets are now watching closely to see whether the group will tap into it,” StoneX analyst Alex Hodes said.

“So far, there are no clear signals that OPEC+ intends to deploy this additional capacity, but the possibility remains on the table,” he added.

Analysts at Goldman Sachs expect the actual increase in supply from the eight OPEC+ countries that have raised output since March will be 1.7 million bpd because other members have cut output after overproducing.

Investors also continued to digest the impact of the latest US tariffs on exports from dozens of trading partners, and remain wary of further US sanctions on Russia.

US President Donald Trump has threatened to impose 100% secondary tariffs on Russian crude buyers as he seeks to pressure Moscow into halting its war in Ukraine.

Trump on Monday said he will substantially raise tariffs on India over its purchases of Russian oil, after two Indian government sources told Reuters over the weekend that the country will keep buying oil from Moscow despite Trump’s threats.

That development helped limit oil’s losses. About 1.7 million bpd of crude supply will be at risk if Indian refiners stop buying Russian oil, ING analysts said in a note.

“All eyes in the market will now shift to US President Trump’s decision on Russia this Friday and whether he targets buyers of Russian oil with secondary sanctions/tariffs or not,” UBS analyst Giovanni Staunovo said.

(Reporting by Shariq Khan, Enes Tunagur, and Florence Tan; Editing by Emelia Sithole-Matarise, David Goodman, Susan Fenton, Paul Simao, and Daniel Wallis)

Have we seen Powell’s last rate cut as Fed chair?: McGeever

ORLANDO, Florida – Federal Reserve Chair Jerome Powell made it clear on Wednesday that the resilient US labor market is currently the primary determinant of monetary policy, a signal that strong July employment figures could snuff out all bets for a September rate cut and reduce the likelihood of any further easing this year.

At his press conference following the Federal Open Market Committee’s meeting on Wednesday, Powell insisted that the rate-setting body’s next move will depend on the “totality” of incoming economic data. He acknowledged the case for easing, like the softening in consumer spending, GDP growth of only 1.2% in the first half of the year, and downside risks to the job market from weakening labor demand and supply.

But he signaled why the Fed is maintaining its mildly restrictive stance: “The main number you have to look at right now is the unemployment rate,” Powell told reporters.

This firm position is particularly notable given that Governors Christopher Waller and Michelle Bowman voted to ease, the first time in over 30 years that there have been two dissenters at a Fed policy meeting.

But Powell has a point. The labor market is still broadly in balance, thanks to tighter immigration controls capping the inflow of foreigners into the workforce. Other indicators like job quits and openings rates are holding up well too. Plus, an unemployment rate of only 4.1% is hardly justification for a rate cut.

The initial market reaction – a retreat on Wall Street, rise in bond yields, surge in the dollar and further cooling of rate cut bets in money markets – suggests investors heard Powell’s message loud and clear.

Rates futures markets now indicate that the probability of a quarter-point cut in September is essentially a coin toss, the least dovish pricing in over a year. Only one rate cut by the end of this year is fully priced.

Steven Englander, head of global G10 FX research at Standard Chartered, says it’s difficult to argue with the market’s interpretation based on Powell’s tone.

“Powell is pretty clear that he’s tying himself to the unemployment rate,” Englander notes.

PRECARIOUS FULL EMPLOYMENT

The labor market’s resilience shows why financial markets have once again overestimated the Fed’s appetite for easing.

The unemployment rate has been anchored at 4.0-4.2% for over a year. That’s historically low, and as Powell says, essentially shows the economy is running at full employment. As long as that remains the case it will be difficult to justify cutting rates, even if that balance is increasingly precarious due to the “dual slowing” of labor supply and demand, as RBC’s Mike Reid puts it.

And we mustn’t ignore inflation, which also arguably warrants Powell’s “modestly” restrictive policy stance. Annual inflation is running “somewhat” above the Fed’s 2% target, according to Powell, with core CPI at 2.9% and core PCE at 2.8%.

And with the pass-through from tariffs yet to be fully felt, the risks to prices are skewed to the upside. Powell reckons that tariffs should represent a one-off price rise only, but he admits no one can be sure. If the nascent tariff-fueled creep in goods prices persists, the Fed may feel it has to wait to ease policy until the impact subsides. And that probably won’t be until next year.

At the height of the post-Liberation Day turmoil in early April, traders were pricing in more than 130 basis points of easing this year. And just one month ago, they were expecting around 70 bps of cuts by year’s end, but that’s now down to around 35 bps.

Looking further out, only 65 bps of easing is priced into the futures curve by May of next year when Powell’s term as Fed Chair ends. Could Powell have presided over his last rate cut as Fed Chair? That’s unlikely, but certainly not impossible.

(The opinions expressed here are those of the author, Jamie McGeever, a columnist for Reuters.)

(Editing by Andrew Heavens)

Longer-dated US yields dip as investors eye payrolls data

NEW YORK – Longer-dated US Treasury yields slid on Thursday before the government’s highly anticipated jobs report for July due on Friday, reversing a rise the previous session following less dovish comments from Federal Reserve Chair Jerome Powell.

Powell on Wednesday doused expectations of a rate cut at the next Fed meeting in September. In a press briefing after the Fed held rates steady, Powell said the Fed is focused on controlling inflation, not on government borrowing or home mortgage costs that President Donald Trump wants reduced. He added that the risk of rising price pressures from the administration’s trade and other policies remains too high for the central bank to begin loosening its “modestly restrictive” grip on the economy.

Thursday’s economic reports, led by the US personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation, supported the US central bank’s patient stance in cutting interest rates. US jobless claims were also better than forecast, suggesting that the labor market was not falling off a cliff.

Federal funds futures, which are tied to the US central bank’s monetary policy, have priced in just a 39% chance of easing in September, compared with 65% before the Fed statement on Wednesday, according to the CME’s FedWatch.

“It’s really now just all about waiting for nonfarm payrolls tomorrow. And while the market might be pricing out the odds of a cut in September following Powell’s comments, it clearly remains comfortable with the idea that rate cuts are a matter of when, not if,” said Zachary Griffiths, head of investment-grade and macro strategy at CreditSights in Charlotte, North Carolina.

“Despite all of the macro volatility and intense focus on the data, we’ve really been in a fairly tight range recently with, let’s say the 10-year anchored around 4.4%, give or take a handful of basis points.”

US 10-year yields were last down 2 basis points (bps) on the day at 4.358%, but up 13 bps on the month. The two-year yield, which reflects interest rate expectations, rose 0.6 bps to 3.943%. It was up 22 bps so far for the month of July.

US 30-year yields were also lower on the day, down 2.7 bps at 4.886%, but up 11 bps this month.

The personal consumption expenditures (PCE) price index rose 0.3% last month after an upwardly revised 0.2% gain in May, the data showed. Economists polled by Reuters had forecast the PCE price index climbing 0.3% following a previously reported 0.1% rise in May. In the 12 months through June, the PCE price index advanced 2.6% after increasing 2.4% in May.

A separate report showed the number of Americans filing new applications for unemployment benefits increased marginally last week, suggesting that the labor market remained stable, though it is taking longer for laid-off workers to find new opportunities. Initial claims for state unemployment benefits rose by 1,000 to a seasonally adjusted 218,000 for the week ended July 26, data showed. Economists polled by Reuters had forecast 224,000 claims for the latest week.

Investors are now looking to Friday’s employment report, with Wall Street economists forecasting new jobs created at 110,000, down from 147,000 in June. The unemployment rate is seen edging up to 4.2% in July from 4.1% in the previous month.

Trade negotiations also remain a focus as Trump reaches some new trade deals and enacts more tariffs on trade partners.

Trump gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal but was expected to issue higher final duty rates for most other countries as the clock wound down on his Friday deal deadline.

US appeals court judges sharply questioned on Thursday whether Trump’s tariffs were justified by the president’s emergency powers, as lawyers for states and businesses challenging the measures argued he exceeded his authority.

(Reporting by Gertrude Chavez-Dreyfuss in New York; Additional reporting by Karen Brettell; Editing by Matthew Lewis and Daniel Wallis)

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