Market Volatility Concerns Amid Fed Uncertainty
Wall Street indices experienced fluctuations as concerns about the Federal Reserve's independence surfaced, following speculation about President Trump's influence on the next Fed Chair. Apple's investment of $100 billion in U.S. manufacturing and heightened tariffs on chip imports impacted stocks, while Eli Lilly faced massive share decline due to disappointing drug data.
On Thursday, Wall Street's major indices showed mixed results, reflecting investor concerns over the Federal Reserve's autonomy following a report about President Donald Trump's potential influence on the selection of a new Fed Chair. The report has amplified uncertainties surrounding the central bank's future trajectory and policy independence.
In notable stock movements, Apple shares surged as the tech giant pledged an additional $100 billion investment in U.S. facilities, helping ease some tariff-related anxieties. Meanwhile, Eli Lilly saw its stock plummet sharply due to less favorable late-stage trial results for a weight-loss drug.
The labor market's fragility added to the tension, with fresh jobless claims hitting a monthly high, fueling expectations for imminent rate cuts by the Federal Reserve. Market participants are now largely betting on multiple interest rate reductions this year as they navigate through economic volatility.
(With inputs from agencies.)
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