NEW YORK – Stock markets across the United States closed Thursday with slight declines, mirroring losses seen in European markets as ongoing diplomatic tensions between America and Iran contributed to rising oil prices and market uncertainty.
Economic data released Thursday painted a mixed picture, with the nation’s goods trade deficit reaching an all-time high while unemployment claims dropped more than analysts had predicted, offering positive signals about job market strength.
Among major market sectors, technology and financial companies saw the largest declines, while utility and energy stocks posted gains. Defense and aerospace companies outperformed the broader market, contrasting sharply with travel-related businesses including airlines, hotels, restaurants, and cruise operators, which experienced significant drops.
The dollar strengthened against other currencies as economic indicators suggested underlying stability in the American economy. Treasury bond yields showed mixed results as investors evaluated potential Federal Reserve policy changes, coinciding with the government’s sale of $9 billion in 30-year inflation-protected securities.
Gold prices climbed as traders balanced concerns over international conflicts against positive domestic economic news.
Several major developments shaped market sentiment Thursday. European Central Bank President Christine Lagarde reportedly assured colleagues she intends to remain in her position, contradicting earlier speculation about her potential early departure.
President Trump issued warnings to Iran regarding its nuclear program, stating that “bad things” would occur if the country fails to negotiate a deal, apparently setting a 10-day timeframe for action.
In Federal Reserve news, Minneapolis Fed President Neel Kashkari criticized recent comments from White House economic advisor Kevin Hassett, calling Hassett’s suggestion that New York Fed officials should “be disciplined” for tariff research an assault on central bank independence.
Trump also announced the formation of a “Board of Peace” for Gaza reconstruction, revealing that multiple countries have pledged $7 billion toward rebuilding efforts contingent on Hamas disarmament.
Looking ahead, investors will monitor several key economic reports Friday, including personal consumption data, fourth-quarter GDP figures, manufacturing surveys, consumer confidence measures, and new home sales numbers.
