U.S. stock index futures were flat to slightly lower on Friday, as investors took a breather following a strong Thursday rally fueled by a newly announced U.S.-U.K. trade agreement. The muted action reflects cautious optimism ahead of a high-stakes meeting between American and Chinese trade representatives this weekend in Switzerland.
As of 5:36 a.m. ET:
- Dow E-minis slipped 48 points (−0.12%)
- S&P 500 E-minis rose 3.5 points (+0.06%)
- Nasdaq 100 E-minis gained 36.25 points (+0.18%)
The S&P 500 and Nasdaq Composite are still on track for modest weekly declines, even with Thursday’s broad gains.
Thursday’s market boost followed the announcement of a limited U.S.-U.K. trade deal, under which the U.K. will cut tariffs on American imports to 1.8% from 5.1%, while the U.S. maintains a baseline 10% duty. Though largely symbolic, the agreement was interpreted by investors as a signal that further de-escalation of trade tensions may be possible.
Eyes on U.S.-China Trade Negotiations
Investor focus now shifts to Switzerland, where U.S. Treasury Secretary Scott Bessent will meet with Chinese Vice Premier He Lifeng. The meeting is seen as a potential turning point in the ongoing tariff war between the world’s two largest economies.
President Donald Trump said he anticipates “substantial negotiations”, suggesting a possible path toward easing the 145% tariffs currently levied on certain Chinese goods.
Market participants remain divided on the potential outcomes:
- Best case: Constructive talks and a roadmap toward lower tariffs spark a Monday rally.
- Worst case: Talks collapse, triggering renewed volatility.
Swissquote Bank analyst Ipek Ozkardeskaya noted that markets appear sensitive to tone and delivery, not just substance. “Even modest progress can trigger a positive reaction,” she said.
Broader Global and Corporate Signals
In related developments, India reportedly offered to reduce its tariff gap with the U.S. from 13% to under 4%, seeking exemptions from American levies. If finalized, such a move could bolster global trade momentum.
Federal Reserve Chair Jerome Powell offered a mixed outlook, saying the U.S. economy remains resilient, but risks from inflation and labor markets persist, leaving monetary policy adjustments uncertain.
Meanwhile, select earnings surprised to the upside:
- Trade Desk (NASDAQ: TTD): +14% premarket after strong Q1 results
- Pinterest (NYSE: PINS): +13.4% after beating revenue forecasts
As earnings taper and macro headlines dominate, investors remain highly sensitive to signals from trade negotiations and central bank commentary.
