Global Markets Waver amid Trade Talks and Fed Caution

Global stocks saw slight upward movement as U.S.-Japan trade talks provided some optimism. However, comments from Fed Chair Powell on cautious interest rate cuts tempered the mood. Meanwhile, tech shares showed mixed outcomes, and economic uncertainties loom as central banks navigate volatile markets influenced by trade policies.

In a week of market fluctuations, global stocks edged higher Thursday, buoyed by optimism from trade discussions between the U.S. and Japan. However, the Federal Reserve's cautious stance on interest rate cuts tempered investor enthusiasm.

President Trump injected optimism by joining Japanese trade talks, announcing 'big progress' without details, offering hope for tariff-impact resolutions. The S&P 500 gained 0.3%, while the Nasdaq slipped slightly. Tech shares had mixed results, uplifted by Taiwan's TSMC but hindered by Nvidia and ASML warnings.

Economic uncertainties affected Europe, as the ECB dropped rates in response to trade unpredictabilities. Across the globe, the Fed's future decisions prompted investor anxiety, compounded by President Trump's criticisms of Fed Chair Powell, and international trade tensions continued to influence market volatility.

(With inputs from agencies.)