U.S. stock index futures were subdued in choppy trading on Friday, as investors parsed fresh U.S.-China tariff comments from President Donald Trump ahead of a weekend meeting between the two countries.
Futures moved lower briefly after 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%.
The world’s two biggest economies are in a trade war that has raised concerns over global economic growth and left markets, companies and the U.S. Federal Reserve in wait-and-watch mode.
"In the best-case scenario, talks go well, both countries commit to finding a reasonable deal, markets rally on Monday. Or… the talks break down, Trump says something he shouldn’t, and we wake up to another hectic week," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
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.
Under the new agreement, Britain will lower its tariffs on U.S. goods and provide greater import access, while the U.S.-imposed 10% baselines tariffs will remain in place.
However, the limited nature of the agreement brought up questions about its actual impact and usability as a template for deals with other countries.
"Yesterday’s price action suggests that investors are eager for good news and react positively — even if the news isn’t that great... it’s all in how it’s delivered," said Ozkardeskaya.
Meanwhile, 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.
At 07:39 a.m. ET, Dow E-minis were down 22 points, or 0.05%, S&P 500 E-minis were up 3.5 points, or 0.06%, and Nasdaq 100 E-minis were up 18.25 points, or 0.09%.
The S&P 500 and the Nasdaq are set for marginal declines this week.
Several policymakers are expected to deliver remarks, days after the Federal Reserve left interest rates unchanged.
Governor Michael Barr said Trump’s trade policies will likely lift inflation, lower growth, and raise unemployment later this year, leaving policymakers with a potentially tricky decision on which problem to fight.
Separately, Governor Adriana Kugler said the labor market was stable at current levels.
As the earnings season peters out, about 75% of S&P 500 companies have surpassed profit expectations. But many have withdrawn their annual forecasts citing an uncertain trade environment.
Expedia (NASDAQ:EXPE) slipped 10% after the online travel platform missed quarterly revenue estimates.
Trade Desk (NASDAQ:TTD) shares jumped 13.4% in premarket trading after the ad firm posted first-quarter revenue and profit above Wall Street estimates.
Pinterest (NYSE:PINS) climbed 12.6% after it forecast current-quarter revenue above estimates, while Coinbase (NASDAQ:COIN) reported a drop in first-quarter profit, sending the crypto exchange’s shares down 1.3%.
Lyft (NASDAQ:LYFT) jumped 11.4% after the ride-hailing company increased its stock buyback program and beat first-quarter profit estimates.