UAE Markets End Mixed as US Fed Maintains Cautious Stance Amid Tariff Uncertainty

Dubai, UAE – The UAE stock markets closed mixed on Thursday as investors reacted to signals from the US Federal Reserve, which indicated a cautious approach to interest rate cuts. Adding to the uncertainty, President Donald Trump’s aggressive tariff policies have raised fears of a prolonged trade war, affecting market sentiment globally.

At the close of trading:

• FTSE ADX General Index edged up 0.279%.

• DFM General Index dipped 0.156%.

Fed Minutes Signal a Cautious Approach

Minutes from the Federal Reserve’s latest policy meeting suggest that officials remain hesitant about adjusting interest rates soon. The central bank's dovish tone reflects concerns over inflationary pressures and the ongoing uncertainty caused by trade tariffs.

"It's clear from the minutes that rate cuts are not happening anytime soon, and the Fed will likely wait for some of the dust to settle on tariffs before providing better forward guidance. The minutes support the recent changes to our baseline forecast that the Fed will be cautious this year, cutting rates only once in December," said Ryan Sweet, Chief US Economist at Oxford Economics.

Sector Performance in the UAE Markets

• Dubai Taxi Co. (DFM:DTC) announced plans to distribute its first annual dividend after reporting a strong year-over-year revenue increase from customer contracts. However, its stock slipped 1.455%.

• Palms Sports (ADX:PALMS) secured a 40 million-Emirati-dirham contract to provide multi-martial arts training services to a government entity over two years. Despite the contract, the company’s stock tumbled 9.797%.

• Alpha Data IPO Update: Abu Dhabi’s IT services company Alpha Data has set a price range of 1.45–1.50 dirhams per share for its initial public offering. This values the company at approximately 1.45–1.50 billion dirhams, with the final offer price expected to be announced on February 26.

Outlook: Investors Await Clearer Signals

With the Federal Reserve holding off on aggressive monetary policy changes and uncertainty lingering around tariffs, investors remain cautious about their next moves in both UAE and global markets.

Source: Trading View: Oxford Economics, MT Newswires