Wall Street closed above their session lows on fresh trade-related developments ahead of Asia’s Thursday trading day.
U.S. stock indexes, which had initially tumbled following Gary Cohn’s resignation from the Trump administration, pared some early losses after the White House hinted that Mexico and Canada could be exempt from planned metals tariffs.
White House press secretary Sarah Sanders on Thursday said recently announced tariffs on steel and aluminum imports could include “potential carve-outs … based on national security.” The president is expected to sign off on the tariff plan this week, she said.
While that was positive news for Canada and Mexico, trade-related concerns were unlikely to completely evaporate.
“[T]he potential for more, rather than less tariffs for China and Europe, remains the key risk,” said Rodrigo Catril, a senior FX strategist at National Australia Bank, in a morning note.
Cohn, Trump’s top economic advisor and a free trade advocate, had resigned after the president announced last week that tariffs of 25 percent and 10 percent would be implemented on steel and aluminum imports, respectively.
The Dow Jones industrial average finished lower by 0.33 percent at 24,801.36, the S&P 500 closed off by 0.04 percent at 2,726.80 and the Nasdaq composite edged higher by 0.33 percent to close at 7,396.65.
