Wall Street Stalls as Investors Brace for U.S.–China Trade Talks

Markets remained largely unchanged on Friday as Wall Street kept a watchful eye on upcoming trade discussions between the U.S. and China, hoping for a breakthrough to ease mounting economic tensions.

The S&P 500 and Nasdaq Composite hovered around the flatline, while the Dow Jones Industrial Average slipped 119 points, or 0.3%, ending the day at 41,249.

Although stocks have regained ground after tumbling in early April—following President Trump’s sweeping “Liberation Day” tariffs—fresh concerns about the U.S. economy’s momentum are weighing on sentiment.

Cautious Optimism Amid Mixed Signals

Analysts point to a disconnect between soft indicators like consumer sentiment and the hard data that typically drives market direction.

“There’s a growing concern that weakening soft data, like sentiment and confidence, will eventually show up in the hard data, like retail sales, GDP, and employment,” said Bret Kenwell, analyst at eToro USA.

Efforts by the Trump administration to reduce global trade friction gave markets some hope this week. On Friday, President Trump suggested lowering U.S. tariffs on Chinese goods from 145% to 80%, ahead of a key meeting in Switzerland between Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese officials.

The president also revealed a framework for a trade deal with the U.K., calling it a “breakthrough” designed to open British markets to American products.

Doubts Linger Despite Diplomatic Efforts

However, some analysts doubt the effectiveness of the proposed U.K.–U.S. trade pact, particularly as it preserves a 10% U.S. tariff on British imports and does little to resolve deeper issues with key partners such as Canada, China, and the European Union.

“We doubt that the U.K.–U.S. trade deal announced yesterday will be a game-changer for the economic outlook of either country,” said Giulia Bellicoso, a market economist at Capital Economics.

Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, added that expectations for this weekend’s U.S.–China meeting should remain measured.

“These are talks about talks,” he said. “China may be coming to assess what’s on the table—or even just to buy time. There’s no shared roadmap or clear pathway to de-escalation.”

Make money without lifting your fingers: Start using a world-class auto trading solution.

EightCap, your trusted Partner in CFDs, Cryptocurrencies and Stocks.