A news conference by Federal Reserve Chair Jerome Powell is displayed on the floor of the New York Stock Exchange in New York, Wednesday, March 19, 2025. (AP Photo\/Seth Wenig)<\/p>\n
A news conference by Federal Reserve Chair Jerome Powell is displayed on the floor of the New York Stock Exchange in New York, Wednesday, March 19, 2025. (AP Photo\/Seth Wenig)<\/p>\n
Federal Reserve Chair Jerome Powell speaks during a news conference after the Federal Open Market Committee meeting, Wednesday, March 19, 2025, at the Federal Reserve in Washington. (AP Photo\/Jacquelyn Martin)<\/p>\n
People work on the floor at the New York Stock Exchange in New York, Wednesday, March 19, 2025. (AP Photo\/Seth Wenig)<\/p>\n
People work on the options floor at the New York Stock Exchange in New York, Wednesday, March 19, 2025. (AP Photo\/Seth Wenig)<\/p>\n
People work on the options floor at the New York Stock Exchange in New York, Wednesday, March 19, 2025. (AP Photo\/Seth Wenig)<\/p>\n
A general view of the skyline of commercial buildings, in London, Wednesday, March 19, 2025. (AP Photo\/Kin Cheung)<\/p>\n
People work on the floor at the New York Stock Exchange in New York, Wednesday, March 19, 2025. (AP Photo\/Seth Wenig)
BANGKOK (AP) \u2014 European shares dropped Thursday after a mixed day in Asia, where Chinese markets declined on heavy selling of tech-related stocks.
Germany’s DAX lost 2% to 22,827.32, while the CAC 40 in Paris lost 1.3% to 8,066.30. Britain’s FTSE 100 lost 0.5% to 8,665.60.
The futures for the S&P 500 and the Dow Jones Industrial Average were down 0.3%.
The XRP cryptocurrency rose more than 8% to over $2.50 after its CEO said the SEC had dropped its case against it.
Asian shares were mixed following an advance on Wall Street after the Federal Reserve<\/a> said the economy still looks healthy enough to keep interest rates where they are.
Markets were closed in Japan for a holiday.
Hong Kong’s Hang Seng lost 2.2% to 24,219.95 and the Shanghai Composite index dropped 0.5% to 3,408.95. Search engine company Baidu’s shares dropped 5.4% and e-commerce and financial giant Alibaba’s shares were down 4%. JD.com<\/a> lost 4.9%.
In South Korea, the Kospi gained 0.3% to 2,637.10, while Australia’s S&P\/ASX 200 added 1.2% to 7,918.90.
Taiwan’s Taiex jumped 1.9%, while the SET in Bangkok gave up 0.7%.
On Wednesday, U.S. stocks also got a boost from easing yields in the bond market. When Treasurys are paying investors less in interest, investors may be willing to pay higher prices for stocks.
The S&P 500 jumped 1.1% to 5,675.29, while the Dow Jones Industrial Average gained 0.9% to 41,964.63. The Nasdaq composite rose 1.4% to 17,750.79.
The rally followed weeks<\/a> of sharp<\/a> and scary<\/a> swings for the U.S. stock market as investors fret over how much pain President Donald Trump<\/a> will allow the economy to endure in order to remake the system. He\u2019s said he wants manufacturing jobs back in the United States and far fewer people working for the federal government.
Trump\u2019s barrage<\/a> of announcements<\/a> on tariffs and other policies have created so much uncertainty that economists worry U.S. businesses<\/a> and households<\/a> may freeze and pull back on their spending.
Fed Chair Jerome Powell acknowledged the rising pessimism among U.S. consumers and companies shown by recent surveys, but he also pointed to data such as relatively low unemployment that show the economy is still strong. It\u2019s possible to have periods where \u201cpeople say downbeat things about the economy and then go out and buy a new car,” he said.
\u201cGiven where we are, we think our policy is in a good place to react to what comes, and we think that the right thing to do is to wait here for greater clarity about what the economy\u2019s doing,\u201d Powell said.
The Fed has been holding interest rates steady this year after cutting them sharply through the end of last year. While lower rates can help give the economy a boost, they can also push inflation upward.
Fed officials indicated they\u2019re still penciling in two cuts to the federal funds rate by the end of this year, just as they were forecasting at the end of last year. But they are also seeing weaker growth for the U.S. economy and higher inflation<\/a> than they were before. More than anything, the message from the Fed seemed to be how much uncertainty is clouding everything.
Powell pushed back against fears about what\u2019s called \u201c stagflation<\/a>,\u201d where the economy stagnates but inflation remains high. The Fed doesn\u2019t have good tools to fix such a toxic combination. The last time the U.S. economy suffered through it was in the 1970s, and Powell said, \u201cI wouldn\u2019t say we\u2019re in a situation that\u2019s remotely comparable to that.”
In other dealings early Thursday, U.S. benchmark crude oil gained 2 cents to $66.93 per barrel. Brent crude, the international standard, was up 2 cents at $70.80 per barrel.
The U.S. dollar fell to 148.50 Japanese yen from 148.69 yen. The euro slipped $1.0844 from $1.0905.
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