Market Rallies Despite Tariff Concerns
Wall Street indexes rose amid President Trump's tariff announcements, buoyed by a positive forecast from Delta Air Lines. Delta's promising outlook boosted airline stocks, contributing to a market rally. Despite tariff concerns, investors focus on potential rate cuts by the Federal Reserve, which could mitigate inflation impacts.
Wall Street indexes climbed on Thursday as investors seemed unfazed by President Donald Trump's latest tariff declarations. Delta Air Lines led the charge with its stock jumping 12.5% following an optimistic forecast for third quarter and full-year profits, surpassing Wall Street predictions.
The positive sentiment spread across the airline sector, with United Airlines and American Airlines posting significant gains. The Dow Transportation index, viewed as an economic indicator, rose over 3%, reaching heights not seen since February. Initial jobless claims declined, adding to investor confidence amidst tariff-induced anxieties.
Despite tensions related to potential tariffs, the Federal Reserve's hints at upcoming rate cuts offer a buffer against inflationary pressures. Wall Street remains watchful as the implications of trade policies continue to unfold, with major stocks like Tesla and Nvidia keeping a steady course.
(With inputs from agencies.)
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