Wall St range-bound as caution sets in ahead of US-China talks
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.
Wall St rises after US-Britain trade deal
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
19 minutes ago
- Business Recorder
Housing scheme with SBP's help: Rs5bn set aside for mark-up subsidy
KARACHI: The federal government has allocated Rs 5 billion in the budget FY26 for a mark-up subsidy under a low-cost housing scheme, to be launched in collaboration with the State Bank of Pakistan (SBP) in the next fiscal year, aimed at enabling individuals to build homes through affordable credit. The federal government has announced a number of incentives and positive measures for the construction sector and housing sector in the next fiscal year budget. Previously, an affordable housing finance scheme titled 'Mera Pakistan Mera Ghar' was abruptly suspended in June 2022, by the federal government to cut the subsidy expenditures and since then, no new affordable housing initiative has been introduced. Housing finance schemes: Pakistan govt ready to offer 100% guarantees to banks Now, aimed to address the housing shortage in the country and support the housing and construction sector, Finance Minister Muhammad Aurangzeb has announced a new housing scheme in the upcoming budget. As per the budget proposals for FY26, a proportionate tax credit will be given on the profit paid on loans obtained for the construction or acquisition of a house measuring up to 250 square yards or a flat with an area of 2,000 square feet or less. Accordingly, an amount of Rs 5 billion has been allocated in the budget FY26 for mark-up subsidy for low-cost housing. In addition, Rs 1 billion has been allocated as subsidy to Naya Pakistan Housing Authority (NPHA). Experts have warmly welcomed the initiatives announced in the federal budget aimed at revitalizing the housing and construction sector, calling them timely, progressive, and essential for Pakistan's economic revival. Dr Anosh Ahmed, a US-based real estate consultant has applauded the government for recognizing the sector's critical role in national economic growth, employment generation, and industrial development. He noted that the construction industry serves as a backbone for numerous allied industries, including cement, steel, electrical equipment, and home furnishings. 'A strong construction sector leads to stronger industrial output and job creation across multiple value chains,' he said. He particularly praised the government decision to reduce the rate of withholding tax on property purchases from 4 percent to 2.5 percent, from 3.5 percent to 2 percent, and from 3 percent to 1.5 percent. He emphasized that these reductions will ease the financial burden on investors, builders, and homebuyers, making real estate transactions more viable and attractive. In addition, he welcomed the proposed abolition of the 7 percent Federal Excise Duty on the transfer of commercial properties, plots, and houses, calling it a decisive step toward removing structural barriers and encouraging real estate investment. 'The introduction of tax credits schemes would support middle-income families and encourage the development of low-cost housing schemes,' he added. He further endorsed the government's plan to promote mortgage financing through a comprehensive system, supported by a dedicated policy from the State Bank of Pakistan. Copyright Business Recorder, 2025
Express Tribune
an hour ago
- Express Tribune
PML-Q supports premier's economic initiatives
A delegation of Pakistan Muslim League-Q on Wednesday called on Prime Minister Shehbaz Sharif and expressed full support for all the initiatives taken by him for the country's economic development and public welfare. The delegation comprising Members of the National Assembly Chaudhry Hussain Elahi, Muhammad Ilyas Chaudhry and Ms Farukh Khan and led by Minister for Overseas Pakistanis Chaudhry Salik Hussain called on the prime minister, PM Office Media Wing said in a press release. The MNAs praised the prime minister and his team for presenting the federal budget for the fiscal year 2025-2026 in the National Assembly. The delegation said that both the military and political leadership were working tirelessly for the national development and the welfare of the people. They also lauded the prime minister's exemplary leadership during the recent tensions with India and his efforts to elevate the country's prestige at the global stage. Matters related to the respective constituencies were also discussed during the meeting. Remittances Prime Minister Shehbaz Sharif on Wednesday expressed satisfaction over increase in remittances during May 2025 which was 13.7 per cent more than the previous fiscal year. In a statement here, the prime minister said the country had received some US$ 34.9 billion in remittances during the current fiscal year, which was 28.8 per cent higher than the outgoing financial year. "US$ 3.7 billion was received in remittances during May 2025, which is 13.7% more than May last year. The increase in remittances is evidence of the growing confidence of overseas Pakistanis in the economic policies of the government," PM Shehbaz said. He added that the government's economic measures and people-friendly budget for the next fiscal year were a harbinger of a bright future for the country. The prime minister paid tribute to the government's economic team. PSX The PM hailing the record surge in the stock market to 124,000 points, said that the bullish trend reflected the confidence of investors and businessmen in the pro-people budget presented by the government on Tuesday. The prime minister, in a statement, said that in the federal budget 2025-26, the government put no additional tax burden on the common man, and that the pay raise and tax reductions would provide relief to the salaried class. "The journey to national economic progress has begun. The people of Pakistan made immense sacrifices. Now, we all must work together to improve the common man's life," he remarked. He also appreciated the government's economic team whose efforts led to the reduction in inflation and increase in foreign exchange reserves. "Pakistan's return from the brink of default, the beginning of economic stability, and the journey toward progress is a miracle. This historic economic turnaround, achieved through the hard work of the economic team and prioritizing Pakistan's interests, will be etched in history forever," he commented.
Express Tribune
3 hours ago
- Express Tribune
Govt raises Rs1.1trin debt auctions
Listen to article The government raised approximately Rs1.1 trillion through auctions of Market Treasury Bills (MTBs) and floating-rate Pakistan Investment Bonds (PIBs). In the MTB auction, bids worth Rs853 billion were accepted by the State Bank of Pakistan. Similarly, the bond auction saw total acceptance of Rs206.91 billion. Meanwhile, the Pakistani rupee weakened against the US dollar on Wednesday, slipping 0.09%. By the day's close, the local currency stood at 282.47 per dollar, down 26 paisa compared to the previous close at 282.21. On the global front, both the US dollar and Chinese yuan remained stable as the two nations wrapped up trade negotiations in London, signalling a potential easing of their prolonged dispute, though details were limited. Gold prices in Pakistan edged higher on Wednesday, mirroring gains in the international market, where bullion rose following softer-than-expected US inflation data. The easing inflation bolstered expectations that the Federal Reserve may begin cutting interest rates by September, lifting investor sentiment. In the domestic market, the price of gold per tola increased Rs600 to Rs352,900 while the price for 10 grams rose Rs514 to Rs302,554, reported the All Pakistan Sarafa Gems and Jewellers Association. This followed a sharp drop on Tuesday when the per-tola price fell Rs6,100.
