The Dow Jones Industrial Average opened lower, falling by 0.2% to 42,051.06 points, weighed down by new tariff announcements and weaker retail sales data. The S&P 500 showed a slight gain of 0.1%, while the tech-heavy Nasdaq also edged up by 0.58%, supported by strong earnings from select large-cap tech firms.
Retail giant Walmart reported better-than-expected quarterly results, offering a modest boost to consumer sentiment. However, broader market enthusiasm was muted due to the overhang of policy uncertainty and inflation pressures.
Global economy faces uneven recovery
The International Monetary Fund (IMF) maintains its forecast of 3.2% global GDP growth for 2025, matching 2024’s pace. Advanced economies are expected to grow at a modest 1.8%, while emerging markets may see growth around 4.2%.
The World Bank projects global growth to stabilise at 2.7% through 2025–26, a subdued pace attributed to weak investment and trade fragmentation. Economic performance remains uneven across regions, with Asia continuing to slow and parts of Latin America facing inflationary stress.
In the energy sector, the International Energy Agency (IEA) revised its oil demand forecast slightly upward, now expecting global demand to grow by 740,000 barrels per day. This adjustment is based on eased trade tensions and falling prices. However, the US Energy Information Administration (EIA) warned that oil consumption could still decline in Asia due to slowing industrial activity.
Altogether, today’s market activity and global data suggest a cautious investor environment, with short-term optimism tempered by long-term structural concerns.
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