Stock indexes edged higher on Thursday, with investors weighing the latest trade announcements from U.S. President Donald Trump, while the Brazilian real recovered some losses following Trump's announcement of a 50% tariff on goods from Brazil.
Trump also late Wednesday confirmed a 50% tariff would be imposed on copper, and said it would start August 1. U.S. copper prices were last higher on the day.
The Brazilian real volatility gauges surged to their highest levels since late April late on Wednesday, and the real had fallen as much as 2.3%. On Thursday, the dollar was last down 0.4% against the real, while Brazilian stocks were down about 0.7%.
Brazilian President Luiz Inácio Lula da Silva vowed retaliation against unilateral tariff hikes, and called a meeting with ministers on Thursday.
But reactions in the broader market to Trump's latest moves have been less severe than in April, possibly reflecting expectations that ongoing negotiations between Washington and its trade partners could yield agreements before the deadline.
Investors are also gearing up for second-quarter earnings, looking for signs of an impact from Trump's trade war launched on April 2.
Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts, said the market appears to be in a holding pattern ahead of the reports from S&P 500 companies.
JPMorgan Chase is due to release results Tuesday, essentially kicking off the reporting period.
"There's been great skepticism with all of the analysts that follow the S&P 500, how they've been reducing their estimates at large, based on the tariffs and uncertainty around that," he said.
"But we think, when all is said and done, those growth companies, and specifically tech companies, are going to come through with fabulous earnings. So I think the market is in a waiting period."
The Dow Jones Industrial Average rose 203.80 points, or 0.46%, to 44,664.09, the S&P 500 rose 6.51 points, or 0.11%, to 6,270.16 and the Nasdaq Composite fell 50.94 points, or 0.25%, to 20,560.39.
MSCI's gauge of stocks across the globe rose 0.64 points, or 0.07%, to 924.94. The pan-European STOXX 600 index rose 0.5%.
Investors digested upbeat quarterly results from TSMC, which showed strong demand for the world's largest contract chipmaker's products, fuelled by surging interest in artificial intelligence applications.
TSMC's report came a day after AI chip giant Nvidia became the world's first public company to reach $4 trillion in market value, although it closed off that level.
The dollar index, which measures the U.S. currency against a basket of currencies, including the yen and euro,
rose 0.4% to 97.77.
In cryptocurrencies, bitcoin gained 0.46% to $111,289.21.
U.S. Treasury yields edged higher after U.S. data showed that jobless claims unexpectedly fell last week and before the U.S. Treasury Department was set to sell $22 billion in 30-year bonds.
The yield on benchmark U.S. 10-year notes was last up 1.4 basis points on the day at 4.356%.
U.S. crude fell 1.86% to $67.11 a barrel and Brent fell to $69.09 per barrel, down 1.55% on the day.
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