NEW YORK (AP) — Stocks are wavering on Wall Street and holding on to gains they made earlier in the week after the U.S. and China declared a temporary cease-fire in their trade war.
The S&P 500 bobbed between small gains and losses and was little changed after the first hour of trading Wednesday.
The Dow Jones Industrial Average rose 52 points, or 0.1% as of 10:02 a.m. Eastern. The Nasdaq rose 0.5%.
Technology stocks rose. Super Micro Computer surged 12.7% after signing a partnership agreement with Saudi Arabian data center company DataVolt. Advanced Micro Devices jumped 6% after announcing a $6 billion stock buyback program.
The market has been relatively steady since its surge on Monday, which came after the U.S. and China entered a 90-day pause in their trade war. The market gained some more ground on Tuesday after the government reported that inflation unexpectedly cooled across the country in April. Additional updates on inflation and retail sales are expected on Thursday.
The benchmark S&P 500 index, which sits at the center many 401(k) accounts has erased all its losses since President Donald Trump escalated his global trade war in early April. It has now erased its losses for the year and is back to within 4.2% of its all-time high set in February.
Trump has delayed a large swath of his most severe tariffs against America’s trading partners, but some import taxes remain in place. Uncertainty over the path ahead continues to hang over businesses and consumers. The on-again-off-again nature of Trump’s trade policy has left companies unable to plan ahead and consumers nervous about spending.
Businesses continue to trim or withdraw their financial forecasts as they face unpredictable trade policy and cautious consumers.
American Eagle tumbled 6.1% after the retailer withdrew its financial outlook for the year citing “macro uncertainty.” General Motors, UPS, Kraft Heinz and JetBlue are among the many companies representing a wide range of industries that have warned about the impact of tariffs and a weakening economy.
More than 90% of companies in the S&P 500 have reported earnings for their latest quarter. The majority of companies have reported better-than-expected earnings, but forecasts for earnings growth during the current quarter have been broadly cut in half for companies in the index.
The economy has already showed signs of slowing. It shrank 0.3% during the first quarter amid a surge of imports as businesses and consumers tried to stock up amid tariffs and policy uncertainty.
Inflation remains a big concern. The latest data on consumer prices released Tuesday showed that tariffs haven’t had much impact yet. But that could change as the impact of current tariffs make their way through supply chains and delayed tariffs potentially go into effect.
The U.S. on Thursday will release its April report for inflation at the wholesale level, which is what companies are paying for goods. Economists expect an easing of inflation there.
The latest update Thursday for retail sales is expected to reflect a sharp drop to 0.2% in April from 1.4% the previous month.
Retail giant Walmart will also report its latest financial results on Thursday and its financial forecasts will be closely watched.
In the bond market, Treasury yields held steady. The yield on the 10-year Treasury rose to 4.49% from 4.47% late Tuesday.
In stock markets abroad, indexes rose in Asia and were mixed in Europe.
