Stocks opened higher on Thursday after reports that U.S. president Donald Trump and Chinese counterpart Xi Jinping had a phone call.
The Dow Jones Industrial Average, which snapped its latest five-day winning streak on June 4, opened in the green but after 40 minutes of trading turned slightly negative.
While the trading showed a lack of upbeat momentum, enthusiasm on Wall Street reflected the news that Trump and Xi talked over the phone. The call, reported by Xinhua, comes just days after Trump claimed China violated a recently agreed trade agreement. Stock markets rallied in April after U.S.-China trade talks in Switzerland.
As stocks edged higher following this latest move, Bitcoin (BTC) hovered just above $105k.
While Wall Street is eyeing gains that could see major U.S. indexes clock out another winning week, worries around global economic growth persist. Latest to add to the overall downbeat mood is the ADP report on private-sector hiring growth.
On Thursday, the Labor Department’s Bureau of Labor Statistics reported that weekly jobless claims rose for the second consecutive week. The number of Americans filing for unemployment benefits increased by 8,000 to 247,000, the highest weekly jump since October 2024. The figure came in above economists’ expectations of 237,000 new claims.
In parallel, U.S. worker productivity fell in the first quarter of 2025, driving unit labor costs up 6.6% amid persistent tariff uncertainty. According to the Bureau of Labor Statistics, nonfarm productivity declined at an annualized rate of 1.5% during Q1.
Also notable on the day was the European Central Bank’s decision to cut interest rates by 25 basis points, bringing its deposit facility rate to 2%. This marks the ECB’s seventh consecutive rate cut, down from a peak of 4% in mid-2023.
The ECB’s move follows eurozone inflation data showing a decline to 1.9% in May, below the bank’s 2% target.
Meanwhile, U.S. President Donald Trump has recently criticized Federal Reserve Chair Jerome Powell for the Fed’s decision not to cut interest rates. Ongoing uncertainty around tariffs and monetary policy continues to shape investor sentiment in risk asset markets.
