ASX set to rise, Wall Street dips; US-China officials talk in Switzerland

The Age

11-05-2025

US stocks drifted through a quiet Friday as Wall Street closed an unusually calm week before US-and Chinese officials met in Switzerland over the weekend to kick off trade talks.
The S&P 500 slipped 0.1 per cent to finish the week with a modest dip of 0.5 per cent. It's the first week in seven where the index at the heart of many 401(k) accounts moved by less than 1.5 per cent, after careening on fears about President Donald Trump's trade war and hopes that he'll relent on some of his tariffs.
The Dow Jones dipped 119 points, or 0.3 per cent, while the Nasdaq composite edged up by less than 0.1 per cent. They finished the week with even more modest losses than the S&P 500. The Australian sharemarket is set to rise, with futures (set before the US-China talks) pointing to a rise of 16 points, or 0.2 per cent, at the open.
The week's main event for financial markets came on Saturday. That's when high-level US and Chinese officials met in Switzerland for their first talks since Trump launched an escalating trade war between the world's two largest economies.
The lead US negotiator in trade talks with China cited 'a great deal of productivity' in resolving differences between the world's two leading economic powers after officials wrapped two days of bargaining in Switzerland following Trump's steep tariffs and Beijing's retaliation.
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US Treasury Secretary Scott Bessent said on Sunday (US time) that there was 'substantial progress' in the weekend sessions but offered scant details on exactly what negotiations entailed. He said details would come at a briefing the following day.
On Wall Street, the flow of earnings reports for the start of the year from companies is slowing but still moving the market.
Expedia sank 7.3 per cent on Friday even though the travel website reported a stronger profit for the latest quarter than analysts expected.