The daily business briefing: June 5, 2019

1. U.S. stocks rally after Fed chief hints at possible interest-rate cut

U.S. stocks surged on Tuesday, posting their second best day of 2019 after Federal Reserve Chairman Jerome Powell suggested the central bank would cut interest rates to boost the economy if intensifying trade tensions hurt growth. The Dow Jones Industrial Average gained 512 points or 2.1 percent. The broader S&P 500 rose by 59 points, also a 2.1 percent gain, and the tech-heavy Nasdaq surged by 194 points, or 2.7 percent. Powell's comments came after St. Louis Fed President James Bullard said Monday that rate reductions "may be warranted soon" if inflation remains below the Fed's target rate of 2 percent and trade tensions threaten economic expansion. U.S. stock-index futures edged up further early Wednesday as global stocks followed Wall Street higher.

MarketWatch CNBC

2. Trump administration bans cruise ship travel to Cuba

The Trump administration on Tuesday announced a ban on U.S. cruise ship travel to Cuba in an effort to deprive the communist-run Caribbean island's government of much-needed cash. The Treasury Department also said it would end "people-to-people" visits to Cuba, a popular form of educational travel. Treasury Secretary Steven Mnuchin said the measures, scheduled to take effect on Wednesday, were being taken to punish the Cuban government for playing a "destabilizing role" in the region, including its support for embattled Venezuelan President Nicolás Maduro. "These actions will help to keep U.S. dollars out of the hands of Cuban military, intelligence, and security services," Mnuchin said. The moves marked the latest step by President Trump to undo former President Barack Obama's push to restore normal relations with Cuba.

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The Associated Press

3. Trump vows to follow through on threat to impose Mexico tariffs

President Trump said Tuesday that he most likely would make good on his threat to impose a 5 percent tariff on all Mexican goods next week to pressure the country's leaders to stop illegal immigration into the U.S. across the southern border. "We're going to see if we can do something, but I think it's more likely that the tariffs go on," Trump said during his state visit to the U.K., calling a surge of undocumented immigrants an "invasion." Mexican President Andrés Manuel Lopez Obrador, whose government on Wednesday will present the U.S. with a proposal to show it is working on resolving the border issue, said he was optimistic the two sides could reach a deal. Senate Republicans discussed blocking Trump's tariffs. He responded by saying they would be "foolish" to do so.

Reuters The Associated Press

4. Sephora closes stores for a day as employees get diversity training

Sephora is closing its stores for an hour Wednesday for diversity training, following a racial accusation by R&B singer SZA. The cosmetics retailer announced the plan for the inclusivity workshops two weeks ago. SZA tweeted in April that an employee at a Sephora in Calabasas, California, suspected her of stealing and called security. "Lmao Sandy Sephora location 614 Calabasas called security to make sure I wasn't stealing," SZA, who is black, tweeted. "We had a long talk. U have a blessed day Sandy." Shortly after the incident, Sephora responded to SZA by tweeting: "You are a part of the Sephora family, and we are committed to ensuring every member of our community feels welcome and included at our stores."

The New York Times CNN

5. Huawei chief suggests 'no-spy agreement' to address U.S. fears

A top Huawei executive said Tuesday that the Chinese tech giant would sign a "no-spy agreement" to show the U.S. its products would not be used by Beijing for surveillance. Huawei, one of the world's leading makers of smartphones and next-generation 5G mobile wireless networks, has made similar proposals to the U.K. and Germany. The U.S. last month blacklisted Huawei and has urged other Western nations to do the same over concerns that China could use the company's gear for spying. "We are willing to sign no-spy agreements with countries," Huawei Chairman Liang Hua told U.S. journalists at the company's headquarters in Shenzhen, China. "But since the U.S. has not bought from us, is not buying from us, and might not buy from us in the future, I don't know if there is such an opportunity to sign such an agreement."

NPR