Stocks and Dollar Climb Amid U.S.-Japan Trade Talks

U.S. stock futures and the dollar rose amid optimism from trade talks with Japan. However, Federal Reserve Chair Jerome Powell’s caution on interest rates dampened the mood. President Trump’s unexpected involvement in discussions added some hope for tariff resolutions. Gold continued to reach record highs as uncertainty persisted.

U.S. stock futures and the dollar experienced an upswing on Thursday, buoyed by trade discussions between the U.S. and Japan. However, sentiments remained cautious as Federal Reserve Chair Jerome Powell expressed a reserved stance on interest rate cuts, tempering investor enthusiasm.

President Donald Trump's surprise attendance at the Washington talks, alongside Japanese negotiator Ryosei Akazawa, suggested progress in tariff resolutions, though specifics were scarce. This development spurred investor optimism, leading to a modest recovery in stock futures.

Meanwhile, the European Central Bank responded to tariff uncertainties by cutting rates, which impacted market confidence. As trade tensions continued to shape market dynamics, gold prices soared to record levels, underscoring persistent investor caution.

(With inputs from agencies.)