Stock index futures showed little movement on Friday morning, with investors anticipating further progress in trade talks following the announcement of a preliminary US-UK trade agreement.
Futures tied to the Dow Jones Industrial Average dipped by 16 points, or 0.04%, while Nasdaq 100 futures increased by 0.12%, and S&P 500 futures climbed about 0.04%.
On Thursday, US President Donald Trump revealed a preliminary trade framework with the United Kingdom, marking the first such agreement with a global trading partner since Trump’s announcement of “reciprocal” tariffs the previous month. The details of the agreement are still under negotiation, but Trump confirmed that the 10% baseline tariff on UK goods would remain in place.
Chris Zacharelli, Chief Investment Officer at Polar Capital Asset Management, noted, “While trade with the UK pales in comparison to trade with our neighbors, especially China, this is an important trial case and a model that can be replicated.”
He further added, “If the government can follow this up with more agreements, it will go a long way in helping to heal the battered stock market this year.”
Trump also highlighted that the 10% tax rate is at the lower end of what other countries might expect, given their significant trade surpluses.
Trump expressed optimism regarding upcoming trade negotiations with China, saying that US negotiators would spend a “great weekend” as talks with China were set to begin. Following his remarks, stock prices surged to their midday highs, with the major indexes finishing well off their highs. The Dow Jones Industrial Average closed up by 0.6%, the S&P 500 gained nearly 0.6%, and the Nasdaq Composite rose about 1.1%.
US Treasury Secretary Scott Bassett and US Trade Representative Jamison Greer are scheduled to meet with their Chinese counterparts in Switzerland this weekend. Despite Trump’s previous announcement to suspend new tariffs for 90 days, he has maintained a hard stance, including a 145% tariff on Chinese goods.
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