Wall Street’s main indexes seesawed on Friday, as investors parsed President Donald Trump’s latest comments on U.S.-China tariffs ahead of a weekend of trade talks between the two superpowers.
Trump said Beijing should open its market to the United States and that 80% tariffs on Chinese goods “seems right.” The levies are currently at 145%.
Representatives from U.S. and China are scheduled to meet in Switzerland over the weekend to discuss tariffs, with investors hoping the talks will salve a bruising trade war that has raised concerns over global economic growth and left markets, companies and the Federal Reserve in wait-and-watch mode.
“The tariff, whether it’s 140% or 80%, the number sounds like a difference, but if there’s still a tariff of 80%, most people are not going to buy stuff,” said Michael Matousek, head trader at U.S. Global Investors.
Investors are likely de-risking their portfolios ahead of the meeting as it’s unclear how long the trade talks could stretch on before any major outcome, Matousek added.
On Thursday, Wall Street’s main indexes closed higher as investors cheered a trade deal struck between Britain and the U.S. – the first of its kind since Trump paused his initial tariffs last month.
Reuters reported India had offered to slash its tariff gap with the U.S. to less than 4% from nearly 13% now, in exchange for an exemption from Trump’s tariffs, according to sources.
At 11:21 a.m. ET, the Dow Jones Industrial Average fell 127.16 points, or 0.31%, to 41,241.29, the S&P 500 lost 5.14 points, or 0.09%, to 5,658.80 and the Nasdaq Composite lost 2.84 points, or 0.02%, to 17,925.30.
Energy, up 0.8%, led gains among the 11 S&P 500 sectors. Funds tracking consumer discretionary stocks outperformed in the week ended Wednesday, while financials were hit the most, according to data compiled by LSEG.
Most megacap and growth stocks were lower on the day, but Tesla outperformed with a 5.6% rise.
All three indexes are set for marginal declines this week, but are hovering near levels seen in late March, having recouped all the losses incurred in the aftermath of Trump’s “Liberation day” tariff announcement last month.
Days after the Federal Reserve left interest rates unchanged, Fed policymakers pointed to increasing economic risks from Trump’s tariffs, echoing comments from Chair Jerome Powell at the meeting earlier this week.
With the peak of the earnings season behind, about 76% of S&P 500 companies have surpassed profit expectations. But many have withdrawn their annual forecasts citing an uncertain trade environment.
Expedia slipped 7.7% after the online travel platform missed quarterly revenue estimates.
Trade Desk shares jumped about 22% after the ad firm posted first-quarter revenue and profit above Wall Street estimates. Insulin delivery device maker Insulet jumped 18.5% after beating estimates for first-quarter profit on Thursday
Advancing issues outnumbered decliners by a 1.54-to-1 ratio on the NYSE and by a 1.01-to-1 ratio on the Nasdaq.
The S&P 500 posted 3 new 52-week highs and one new low while the Nasdaq Composite recorded 39 new highs and 58 new lows.
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