Wall Street’s main indexes have risen, marking their third straight day of gains, as investors assessed fresh comments from President Donald Trump regarding tariffs on China ahead of a key weekend meeting between the two countries.
Futures had moved lower briefly earlier in the day after Trump said Beijing should open its market to the United States and that 80 per cent tariffs on Chinese goods “seems right”.
The levies are currently at 145 per cent.
Representatives from the world’s two biggest economies 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 US Federal Reserve in wait-and-watch mode.
“Anyone who thinks the deal is getting done at 80 per cent is not seeing things clearly. You’re going to see that they’ll come to something more reasonable over time, but this was a step in the right direction,” said Thomas Hayes, chairman at Great Hill Capital.
On Thursday, Wall Street’s main indexes closed higher as investors cheered a trade deal struck between Britain and the US – 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 US to less than four per cent from nearly 13 per cent now, in exchange for an exemption from Trump’s tariffs, according to sources.
“We’re going to see multiple deals with major nations and that’s going to allow CEOs to get some more confidence that they can start to plan and possibly invest all that has been on hold,” said Hayes.
In early trading on Friday, the Dow Jones Industrial Average rose 50.37 points, or 0.12 per cent, to 41,418.82, the S&P 500 gained 15.49 points, or 0.27 per cent, to 5,679.43 and the Nasdaq Composite gained 91.47 points, or 0.51 per cent, to 18,019.61.
Energy, up 0.8 per cent, 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.
The S&P 500 and the Nasdaq 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, Governor Michael Barr said Trump’s trade policies will likely lift inflation, lower growth, and raise unemployment later this year.
With the peak of the earnings season behind, about 76 per cent of S&P 500 companies have surpassed profit expectations. But many have withdrawn their annual forecasts citing an uncertain trade environment.
Expedia slipped 8.8 per cent after the online travel platform missed quarterly revenue estimates.
Trade Desk shares jumped 23.2 per cent after the ad firm posted first-quarter revenue and profit above Wall Street estimates. Insulin delivery device maker Insulet jumped 18 per cent after beating estimates for first-quarter profit on Thursday
Advancing issues outnumbered decliners by a 2.68-to-1 ratio on the NYSE and by a 2.01-to-1 ratio on the Nasdaq.
The S&P 500 posted three new 52-week highs and one new low while the Nasdaq Composite recorded 25 new highs and 39 new lows.
