US stocks experienced fluctuations on Friday as President Trump hinted at potential new trade deals and discussed the possibility of reducing tariffs on Chinese imports ahead of crucial negotiations with China this weekend in Geneva.
The Dow Jones Industrial Average fell by 0.3%, erasing its early gains. The S&P 500 closed slightly below breakeven, while the Nasdaq Composite remained mostly unchanged. Overall, all three major indices concluded the week down by less than 0.5%.
Market attention is highly focused on the upcoming US-China trade discussions, particularly after a recent rally in stocks spurred by the announcement of a US-UK trade agreement. In a post on Truth Social, Trump remarked that a reduction in the current high tariff rates may be in the works, stating an 80% tariff rate “seems right.”
Consistently maintaining an optimistic outlook, Trump characterized the forthcoming talks with China as “substantive.” This sentiment provided hope for a decrease in trade tensions, further reinforced by his reference to “Many Trade Deals in the hopper, all good (GREAT!) ones.”
In the cryptocurrency market, Bitcoin experienced a rally against the dollar, trading above $102,000, showing increased investor confidence amid the positive trade news.
On the corporate front, Pinterest stocks surged after a promising revenue outlook for the upcoming quarter, indicating strong ad spending on the platform despite tariff-related economic concerns. Conversely, Expedia’s shares fell as the company reported revenue misses tied to declining demand in the US.
The ongoing trade dialogue and corporate earnings show the resilience and adaptability of the market, reflecting a cautiously optimistic sentiment among investors and stakeholders.