Market Update: Stocks Rise as Investors Await Trade Developments
Stocks edged up in early trading on Friday, continuing the momentum from the previous days’ gains as investors keep a close eye on tariff developments.
About ten minutes into the trading session, the S&P 500 and tech-heavy Nasdaq composite climbed by 0.5% and 0.7%, respectively, while the Dow Jones Industrial Average increased a more modest 0.3%. This uptick follows a strong performance on Thursday, attributed to President Donald Trump’s announcement regarding a trade deal with the UK, along with indications of ongoing negotiations.
While the Dow saw slight gains during Friday’s sessions, the S&P 500 and Nasdaq experienced declines of 0.4% and 0.3% during the week. Should a major index report a weekly profit, it would mark a significant accomplishment for all three indexes, a first since October.
Investors are particularly attuned to news about tariffs on China, especially with crucial trade talks set to take place this weekend in Switzerland between US and Chinese officials. Trump described the discussions as “very substantial,” suggesting that the current 145% tariffs on China might decrease if negotiations go positively.
Market participants are also paying attention to remarks from several Federal Reserve officials scheduled to speak today. The Fed’s policy committee opted to maintain benchmark rates on Wednesday, amid frustrations expressed by Trump. Federal Reserve Chairman Jerome Powell highlighted that tariffs have contributed to rising inflation and potential unemployment risks. Still, the central bank requires more data to assess how trade policies are impacting the economy before making any adjustments to monetary policy.
In the early trading hours, shares of major tech companies generally saw upward movement, led by a 5% gain from Tesla. Other tech giants, including Apple, Amazon, Meta Platforms, and Broadcom each saw increases of around 1%, while figures for Microsoft, Nvidia, and Alphabet were notably higher.
The earnings calendar is fairly light today, but certain companies experienced significant movement following their quarterly results. Pinterest and CloudFlare saw their shares jump by 10% and 7%, respectively, whereas travel booking platform Expedia and Buys saw declines of 9% and 8%.
Meanwhile, Bitcoin continued its upward trajectory, surpassing $100,000 for the first time since February, currently sitting around $103,200 after dipping to an overnight low of $101,300.
In commodities, gold futures rose by 1.1% to $3,340 an ounce, rebounding after two consecutive days of decline. Additionally, U.S. crude oil benchmark prices increased by 1% per barrel to $60.50, marking the highest levels in a month after reaching their lowest point in four years just last week.
Yields on 10-year Treasury bonds, which influence various loan types, including mortgages, remained steady at 4.37% this morning. The U.S. dollar index, which tracks the dollar against a basket of foreign currencies, dipped by 0.3% to 100.30 after hitting its highest level in a month during Thursday’s trading.
