World shares mixed after rebound on Wall St as investors await next steps in trade war

World shares were mixed yesterday after a rebound on Wall Street fueled by an encouraging update on U.S. consumer prices.

That report showed overall prices rose less for U.S. consumers last month than economists expected. Today [Macau time] will bring an update on wholesale prices.

The future for the S&P 500 lost 0.2% while that for the Dow Jones Industrial Average fell 0.1%.

Chinese markets led a broad decline in Asia as investors watched for the next steps in President Donald Trump’s trade war. Hong Kong’s Hang Seng index shed 0.6% to 23,462.65, while the Shanghai Composite index lost 0.4% to 3,358.73.

Tokyo’s Nikkei 225 gave up early gains to close 0.1% lower at 37,790.03.

South Korea’s Kospi edged 0.1% lower, to 2,573.64. In Australia, the S&P/ASX 200 lost 0.5% to 7,749.10.

Taiwan’s Taiex shed 1.4% and the Sensex in India edged 0.1% lower. Bangkok’s SET rose 0.1%.

On Wednesday, the S&P 500 gained 0.5%, a day after the index briefly fell more than 10% below its all-time high set last month.

The Dow industrials fell 0.2% and the Nasdaq composite climbed 1.2%.

Companies in the artificial-intelligence industry led gains, bouncing back after AI stocks got crushed recently by worries their prices had gone too stratospheric.

Nvidia climbed 6.4% to trim its loss for the year so far to 13.8%. Server-maker Super Micro Computer rose 4%, and GE Vernova, which is helping to power AI data centers, gained 5.1%.

Elon Musk’s Tesla, whose price had more than halved since mid-December, rallied 7.6% for its first back-to-back gain in nearly a month.

But more stocks in the S&P 500 fell than rose. Among the hardest hit were businesses that could be set to feel pain because of Trump’s trade war.

The question hanging over markets is how much pain Trump will let the economy endure through tariffs and other policies.

Even if Trump ultimately goes with milder tariffs, damage could still be done. The dizzying barrage of on -again, off -again announcements on tariffs has already begun sapping confidence among U.S. consumers and businesses by ramping up uncertainty. That could cause U.S. households and businesses to spend less, hurting the economy.

On Tuesday, for example, Trump said he would double 25% tariffs announced on Canadian steel and aluminum, only to walk it back later in the day after a Canadian province pledged to drop a retaliatory measure that had incensed Trump.

Some U.S. businesses say they’ve already begun seeing a change in behavior among their customers.

Yesterday’s inflation report came at a time when worries are mounting that Trump’s tariffs will drive prices even higher as U.S. importers pass on their costs to their customers.

It’s also helpful for the Federal Reserve, which had been cutting interest rates last year to boost the economy before pausing this year, partly because of concerns about stubbornly high inflation.

In other dealings early Thursday, U.S. benchmark crude oil lost 37 cents to $67.31 per barrel. Brent crude, the international standard, gave up 29 cents to $70.66 per barrel.

The U.S. dollar fell to 148.16 Japanese yen from 148.25 yen. The euro fell to $1.0873 from $1.0887.

ELAINE KURTENBACH, BANGKOK, MDT/AP