The Dow Jones Industrial Average dropped more than 100 points on Friday as investors awaited trade talks between U.S. and Chinese officials over the weekend. The 30-stock index lost 119.07 points, or 0.29%, to settle at 41,249.38. The S&P 500 inched down 0.07% to close at 5,659.91, while the Nasdaq Composite ended the session little changed at 17,928.92.
The upcoming trade negotiations follow a preliminary deal between the U.S. and the United Kingdom. President Trump expressed optimism about various trade agreements, suggesting an “80% Tariff on China seems right” ahead of the talks led by Treasury Secretary Scott Bessent with Chinese counterparts in Switzerland. This is seen as a de-escalation from the current 145% tariff on China.
Progress this week was encouraging, but we remain in the ebbs and flows of the news cycle, which is causing market reactions. We are likely in a period of volatility until we see tangible outcomes,” said Mark Hackett, chief market strategist at Nationwide.
Dow drops amid trade anticipation
For the week, the S&P 500 slid about 0.5%, the Nasdaq dropped roughly 0.3%, and the Dow fell almost 0.2%. In other market news, Susquehanna International Group upgraded Affirm’s stock to a positive rating from neutral, citing the company’s strong quarterly results. Wells Fargo found that only 13 companies have withdrawn their earnings outlooks so far this earnings season, which analyst Christopher Harvey called a “positive earnings season surprise.”
Morgan Stanley upgraded Tapestry, the owner of Coach, Kate Spade, and Stuart Weitzman, to an overweight rating, with analyst Alex Straton’s price target representing a 16% upside.
Monster Beverage stock climbed 2% on Friday, marking a new all-time high. However, total household credit and debit card spending rose only 1% year-over-year in April, according to data from Bank of America. Energy stocks outperformed as crude oil futures rose 1.5% on the day, retaking the $60 per barrel level.
Several companies made headlines with significant midday trading moves, including Insulet Corporation, which surged more than 19% after reporting better-than-expected first-quarter results. As investors await critical trade negotiations, individual stock performances present a mixed bag of optimism and caution, contributing to the overall uncertainty looming over the market.
Image Credits: Photo by Annie Spratt on Unsplash
