Wall Street Drifts, Awaits US-China Trade Meeting Outcome/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks drifted Friday as Wall Street awaited a pivotal weekend trade meeting between American and Chinese officials in Switzerland. President Trump hinted at tariff reductions, causing brief volatility in the markets. Meanwhile, strong earnings from companies like Lyft and Insulet buoyed investor sentiment.
Wall Street Eyes US-China Trade Talks Quick Looks
- S&P 500 up 0.4%, aiming to erase weekly losses.
- Dow Jones rose 86 points; Nasdaq gained 0.6%.
- Markets await Saturday’s high-stakes US-China trade meeting in Switzerland.
- Trump floated lowering China tariffs to 80% from 145%.
- Stock futures briefly dropped after Trump’s tariff post.
- Strong corporate earnings helped steady markets.
- Lyft jumped 20.3% after record ridership despite revenue miss.
- TSMC surged 1.8% after reporting 48% revenue growth.
- Insulet soared 15.8% on strong insulin pump sales.
- Expedia fell 7.5% amid softer U.S. and Canada travel demand.
- Bond yields slightly down; 10-year Treasury at 4.36%.
Wall Street Drifts, Awaits US-China Trade Meeting Outcome
Deep Look
Wall Street Holds Steady Ahead of High-Stakes US-China Trade Talks
NEW YORK — U.S. stock indexes ticked modestly higher Friday as Wall Street paused in anticipation of a critical weekend meeting between American and Chinese officials — a potential turning point in the ongoing global trade war that has shaken investor confidence in recent weeks.
The S&P 500 rose 0.4%, the Dow Jones Industrial Average gained 86 points (0.2%), and the Nasdaq Composite climbed 0.6% during early trading. The relatively calm movement marked a shift from the past six weeks of volatility, with the S&P now on pace to close its first week without a 1.5% swing in either direction.
Focus on Switzerland: US-China Talks Loom
The calm could be short-lived. Markets are bracing for a high-level meeting Saturday in Switzerland — the first direct discussions between U.S. and Chinese trade leaders since President Donald Trump ignited a new phase of tariff hikes. The stakes are high, with fears that prolonged trade friction could nudge the U.S. economy toward recession unless tariffs are rolled back swiftly and substantially.
Adding to the uncertainty, President Trump suggested Friday that tariffs on Chinese imports could be reduced to 80% from their current 145%, depending on how the talks proceed. While this would mark a significant step back, markets initially reacted with caution. U.S. stock futures slipped after the president’s post on Truth Social, though markets rebounded by mid-morning.
“Many Trade Deals in the hopper, all good (GREAT!) ones!” Trump posted, signaling optimism ahead of the talks.
The negotiations will be led on the U.S. side by Treasury Secretary Scott Bessent, who has been tasked with managing trade dynamics and aligning policy with Trump’s tariffs-first approach.
Earnings Reports Fuel Select Stock Gains
- Lyft soared 20.3% after posting better-than-expected profits, despite a revenue miss. The company recorded its highest weekly ridership ever in late March.
- Taiwan Semiconductor Manufacturing Company (TSMC) rose 1.8% after reporting a 48.1% year-over-year revenue spike for April, a promising sign for global chip demand.
- Insulet, a medical device firm, jumped 15.8%, leading the S&P 500 after surpassing earnings estimates and raising its annual guidance for its tubeless insulin pump technology.
- Expedia fell 7.5%, citing weaker-than-anticipated travel demand in the U.S. and a near 30% decline in Canadian bookings to the U.S. Despite beating earnings expectations, the travel giant warned of softness across its platforms, including Vrbo and Hotels.com.
Other travel stocks like Hilton and Airbnb also recently reported slowdowns in U.S. travel demand, a trend that may signal a broader sector cooldown.
Global Markets React to Trade Tensions
Overseas, markets showed mixed reactions. European indexes moved higher, buoyed by earnings optimism, while Asian markets were split:
- Hong Kong’s Hang Seng gained 0.4%.
- Shanghai’s composite index dipped 0.3% after China reported an 8.1% annual rise in exports for April — outpacing expectations but also revealing a 21% drop in exports to the U.S., largely due to the newly imposed tariffs.
Bond Market Stability
In the bond market, the 10-year Treasury yield edged slightly lower to 4.36%, down from 4.37% Thursday. This modest movement reflects market caution ahead of the trade summit and muted inflation expectations in the near term.
Conclusion: Calm Before the Trade Storm
Friday’s relatively stable session masks deeper anxiety ahead of the weekend’s U.S.-China meeting. If the talks succeed in reducing tariffs and restoring trade momentum, markets could rally. But a failure to deliver progress — or the announcement of further escalation — could reignite volatility next week.
Investors, for now, remain cautiously optimistic, watching headlines closely and bracing for what may be a pivotal moment in global economic relations.
You must Register or Login to post a comment.