Wall Street wrapped up a subdued week on Friday, with major U.S. stock indexes closing near flat as traders remained cautious ahead of critical trade talks between the United States and China. The Dow Jones Industrial Average dropped 119.07 points, or 0.29%, ending at 41,249.38. The S&P 500 slipped 4.03 points, or 0.07%, to 5,659.91, while the Nasdaq Composite managed a marginal gain of 0.78 points to close at 17,928.92.
Tariff Tensions Loom Over Markets
Investor sentiment remained fragile as President Donald Trump suggested that tariffs on Chinese goods should be set at 80%, a significant adjustment from the current 145% rate. Trump emphasized that Beijing should open its markets to the U.S., heightening concerns over a possible escalation in the ongoing trade conflict.
Representatives from the world’s two largest economies are set to meet in Switzerland over the weekend, in what many see as a crucial step toward easing tensions that have weighed on global markets for months. “China is the main focus, and that is the one where the consequences are largest because of long-term trade practices that really need to be improved,” said Russell Price, chief economist at Ameriprise in Michigan.
Mixed Signals from Markets
Despite the cautious mood, U.S. stocks have largely rebounded from their April lows, supported by solid corporate earnings. Of the 450 S&P 500 companies that have reported earnings, around 76% have beaten analyst expectations. However, many firms have also cut or withdrawn future guidance due to the uncertain trade environment.
Energy stocks led the market, gaining 1.1% as oil prices rose on optimism surrounding the talks, while healthcare lagged, falling 1.1% to become the worst-performing sector of the day.
Meanwhile, the Federal Reserve remains watchful, with policymakers expressing concerns about the economic impact of ongoing trade disputes. Chair Jerome Powell highlighted these risks earlier this week, signaling a cautious outlook.
Mixed Performance Across Sectors
Expedia shares plunged 7.3% after the online travel giant missed quarterly revenue estimates, reflecting the ongoing challenges in the tech sector. On the broader market, advancing issues outpaced decliners on the NYSE by a 1.35-to-1 ratio, while decliners led advancers on the Nasdaq by a 1.06-to-1 ratio.
In total, the S&P 500 posted six new 52-week highs and three new lows, while the Nasdaq recorded 53 new highs and 97 new lows. Trading volume across U.S. exchanges hit 16.03 billion shares, just below the 20-day average of 16.47 billion.
As the weekend approaches, all eyes remain on the U.S.-China trade talks, with investors hoping for a breakthrough that could calm global markets and provide clearer direction for the months ahead.