Dow: -0.22%; S&P 500: flat; Nasdaq: +0.32%. The US services sector contracted in May for the first time in nearly a year. CrowdStrike slumped on a downbeat revenue forecast. The Fed lifted its asset cap on Wells Fargo, sending the stock to a three-month high. GlobalFoundries climbed on plans to ramp up investment. South Korea's KOSPI hit an 11-month peak amid post-election optimism.

US markets end mixed as investors react to economic signals

US equity benchmarks closed Wednesday's session without clear direction. While the broad-market S&P 500 remained nearly unchanged, the tech-heavy Nasdaq posted modest gains. Meanwhile, the Dow Jones slipped into negative territory as fresh economic data reignited concerns about the potential fallout from former President Donald Trump's trade policies.

Services sector under pressure

A disappointing reading came from the services sector, where activity declined in May for the first time in nearly a year. Firms reported rising input costs, reviving questions about slowing economic momentum and the threat of renewed inflationary pressure. Early-session optimism faded toward the close, with trading volumes staying subdued.

Looking back at May's rally

Despite the recent caution, May delivered strong performance: the S&P 500 and Nasdaq notched their biggest monthly gains since November last year. Easing trade rhetoric and a string of upbeat earnings reports helped underpin the rally.

Analysts eye new upswing

Although the S&P 500 remains more than 2% below its record February highs, analysts are cautiously optimistic about the road ahead. Barclays, in particular, has revised its index forecast upward, citing reduced trade risks and expectations for a profit rebound by 2026.

Market recap:

• The Dow Jones Industrial Average lost 91.90 points (–0.22%) to close at 42,427.74;
• The S&P 500 inched up by just 0.44 points (+0.01%) to finish at 5,970.81;
• The Nasdaq Composite gained 61.53 points, or +0.32%, ending the day at 19,460.49.

HPE impresses investors with AI and hybrid cloud

Shares of Hewlett Packard Enterprise rose 0.8% after the company posted better-than-expected quarterly results. Strong demand for AI-driven solutions and hybrid cloud infrastructure drove revenue and profit growth in the second quarter.

GlobalFoundries commits to major investment

GlobalFoundries shares jumped 2.3% following news of a large-scale investment plan. The semiconductor manufacturer intends to pour up to $16 billion into expanding its production capacity, a move analysts view as a strong vote of confidence in the long-term demand for chips.

Wells Fargo: gains prove fleeting

Although Wells Fargo briefly touched a three-month high, shares closed the session down 0.4%. The initial market enthusiasm followed the Federal Reserve's decision to lift a longstanding $1.95 trillion cap on the bank's assets. However, that optimism faded as the day wore on.

Tesla loses ground in Europe again

Tesla shares dropped 3.5%, extending a downward trend as EV sales declined for the fifth consecutive month in key European markets. The numbers deepened concerns about demand sustainability across the region.

CrowdStrike falls on weak revenue forecast

Shares of cybersecurity firm CrowdStrike fell 5.8% after the company issued a quarterly revenue forecast that came in below market expectations. Investors saw the guidance as a potential sign of slowing growth momentum.

Dollar Tree slammed by tariff turbulence

Discount retailer Dollar Tree plunged 8% after sharply cutting its profit outlook. The company now expects adjusted earnings in the second quarter to drop by as much as 50% year-over-year. Management blamed tariff-related volatility for the downgrade.

Asia shows confidence amid global volatility

Stock markets across the Asia-Pacific region opened the day with moderate optimism, as investors awaited fresh commentary from the European Central Bank, expected to outline its policy stance amid a turbulent global economic backdrop.

Canada prepares measured response to US tariff threats

In response to reports of potential new US tariffs on metal products, Canada is considering reciprocal economic measures. Meanwhile, US-EU relations appear to be making headway, with European officials reporting positive momentum in negotiations with Washington.

High-level diplomatic visits: Berlin and Tokyo officials heading to Washington

Japan is dispatching its chief trade envoy, Ryosei Akazawa, to the US on Thursday as part of an ongoing round of bilateral economic talks. He will be joined by Germany's newly elected Chancellor Friedrich Merz, who also plans to visit the US capital.

Markets: winners and losers

• The MSCI broad index for Asia excluding Japan rose 0.4%, reflecting a measured uptick in risk appetite.
• Japan's Nikkei edged down 0.5%, likely a result of technical correction.
• South Korea's KOSPI surged 0.9%, hitting an 11-month high on a wave of political enthusiasm following Lee Jae-myung's victory.
• Hong Kong's Hang Seng advanced 0.5%, supported by resilient gains in heavyweight tech stocks.

Currency markets: USD seeks direction

The US dollar index, tracking the greenback against six major peers, edged up 0.1% to 98.879, partially clawing back losses from the previous session. The dollar/yen pair rose 0.2% to 143.00, while the euro held steady at $1.1411 after a 0.4% climb the day before.

Commodities: gold pulls back, oil under pressure

Gold edged lower on Thursday after the previous day's rally, while oil prices came under renewed pressure. Two key developments weighed on the market: a surprise buildup in US crude inventories and Saudi Arabia's decision to cut July crude prices for Asian buyers.

Precious metal dips into the red

Gold prices slipped modestly, with the spot rate falling 0.2% to $3,367.30 per troy ounce. Investors appeared to be locking in profits from earlier gains, keeping a close watch on currency and bond market signals for further direction.

Oil slides on inventory surge

West Texas Intermediate (WTI) crude declined 0.5% to $62.58 per barrel. The drop followed data showing a rise in US commercial stockpiles, combined with lingering concerns about the outlook for global demand.

Futures tread water

Futures for the pan-European Euro Stoxx 50 and US S&P 500 e-minis showed little movement, trading near flat. Markets are clearly in wait-and-see mode ahead of fresh macroeconomic signals and central bank policy updates.