Wall Street Mixed as China Bolsters Economy Before US Trade Talks

The US stock market experienced varied trading results on Wednesday because China introduced economic support measures before its trade negotiations with the US. The S&P 500 maintained a flat position while the Dow increased 147 points (0.4%) and the Nasdaq decreased by 0.3%. The technology sector led market declines through Google's (-3.8%) and Apple's (-1.8%) performance but Disney experienced a 10.8% surge due to its successful earnings report. The 145% US tariffs on Chinese imports together with China's 125% retaliatory tariffs have created doubts about consumer spending and corporate profit levels. The economic uncertainty led Super Micro Computer to reduce its forecasts by 5.3% and Marvell Technology to decrease its outlook by 11.2%. The US and Chinese officials will meet in Switzerland to discuss trade while China plans to reduce interest rates to absorb tariff impacts. The Federal Reserve maintains its expectation to keep interest rates unchanged while Chair Jerome Powell watches for inflation risks caused by tariffs. The United States recorded its largest trade deficit ever at $140.5 billion during March while the first-quarter economic performance contracted by 0.3%. The decline in consumer confidence does not affect the positive employment situation. Treasury yields remained unchanged with the 10-year yield fixed at 4.28%.