Market Jitters: The Influence of Trade Talks and Interest Rates on Wall Street

The S&P 500 saw gains with Eli Lilly and Apple boosting the index amid ongoing U.S. trade talks with Japan. President Trump hinted at progress, however, U.S.-China negotiations remain uncertain. Investors focus on tariffs' impact, while pressure mounts on the Federal Reserve for interest rate cuts.

The S&P 500 notched upwards on Thursday, buoyed by Eli Lilly and Apple, as investors absorbed updates on U.S. trade talks with Japan juxtaposed against concerns about the interest rate outlook. President Trump's statement about 'big progress' in bilateral discussions injected optimism after a sharp downturn on Wednesday.

Trump expressed anticipation for a trade agreement with China without providing details on the stalled negotiations with the global giant. Eli Lilly's stock surged following positive results from its experimental diabetes drug, while Apple saw recovery from prior losses. However, setbacks from UnitedHealth kept the Dow in the red by revising its annual profit forecast.

The announcement of possible sweeping tariffs has left investors striving for clarity on their potential reach and impact, as Trump made efforts to sway Federal Reserve Chair Jerome Powell towards lowering interest rates. Meanwhile, ongoing trade uncertainties threaten to bolster inflation and suppress economic growth.

(With inputs from agencies.)