Despite Trump's move to soften the blow of his auto tariffs and signs of progress in broader trade negotiations, details remain scant, with Commerce Secretary Howard Lutnick saying he had reached one deal with a foreign power.
Delivery giant UPS said on Tuesday it would cut 20,000 jobs to lower costs, while General Motors pulled its outlook and delayed its investor call, joining a list of companies that have ditched forecasts for 2025 or slashed outlooks.
Shares struggled for direction and U.S. futures slid, while the dollar was on track for its worst monthly performance in more than two years.
While a fire sale of U.S. assets that gathered steam earlier this month seems to have abated for now, confidence remains fragile and the recent slew of economic data has given investors little reason for them to return.
U.S. consumer confidence slumped to a nearly five-year low in April and job openings dropped sharply in March, in signs that cracks in the economy are starting to show.
Amid persistent Sino-U.S. trade tensions, the world's second-largest economy is starting to feel the heat too.
China's factory activity contracted at the fastest pace in 16 months in April, a survey showed on Wednesday, as Trump's hefty tariffs snapped two months of recovery.
Still, Beijing is betting on Washington blinking first in a protracted trade war, as officials advance this year's stimulus plans but hold off on fresh measures.
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