U.S. equities closed out an unusually quiet stock market week with modest gains on Friday, as the major indexes managed to recover from earlier losses. With minimal economic data and no major corporate surprises, traders remained cautious yet optimistic ahead of high-stakes trade talks between the U.S. and China this weekend.
By midday Friday, the S&P 500 was up 0.4%, placing the index back in the green for the week. The Dow Jones Industrial Average rose 120 points, while the Nasdaq Composite advanced 0.6%. The week’s relatively calm performance of the stock market follows several volatile sessions earlier this month, giving investors a brief moment to catch their breath.
Trade Talks May Break the Silence
The biggest wildcard of this quiet stock market week lies just ahead. On Saturday, U.S. and Chinese officials will meet in Geneva, Switzerland, marking their first formal dialogue since the onset of President Donald Trump’s sweeping tariffs. These talks could set the tone for global markets in the coming weeks.
President Trump hinted at a softer stance Friday morning by proposing a reduction in tariffs on Chinese imports—from 145% to 80%. “80% Tariff on China seems right! Up to Scott B,” he wrote on social media, referring to Scott Bessent, his Treasury chief and lead trade negotiator.
The stock market responded cautiously to the remarks. Futures markets nudged higher, with S&P 500 futures up 0.2%, Dow Jones futures up 0.1%, and Nasdaq futures climbing 0.3%.
Mixed Corporate Results Add to Tepid Sentiment
While trade optimism helped lift investor spirits, earnings reports painted a mixed picture. In premarket trading, shares of Expedia Group Inc. (NASDAQ:EXPE) tumbled 10% after the company slashed its full-year bookings forecast. Expedia, which owns Vrbo and Hotels.com, cited a 7% drop in U.S. travel demand and a staggering 30% decline in bookings from Canada.
Other travel-related companies have echoed this trend. Hilton Worldwide Holdings Inc. (NYSE:HLT) and Airbnb Inc. (NASDAQ:ABNB) both flagged weaker inbound travel to the U.S. in recent reports, hinting at broader industry softness potentially tied to economic uncertainty and tariff pressures.
Global Markets React Cautiously
Overseas, the tone was similarly restrained. European markets posted modest gains, with Germany’s DAX rising 0.6%, France’s CAC 40 climbing 0.7%, and the FTSE 100 in the UK gaining 0.3%. In Asia, Japan’s Nikkei 225 surged 1.6%, while Hong Kong’s Hang Seng inched up 0.4%. Meanwhile, China’s Shanghai Composite Index dipped 0.3% after trade data revealed that exports to the U.S. fell over 20% in April.
Despite that drop, China’s overall exports grew 8.1% annually—still robust, but down from 12.4% the month prior. The export slowdown underscores the ripple effects of ongoing trade tensions, especially on global supply chains.
Energy and Currency Markets Stay Volatile
In commodities, U.S. benchmark crude oil rose $1.23 to $61.14 per barrel, while Brent crude, the global benchmark, added $1.19 to settle at $64.03. Oil prices gained on hopes that easing trade tensions might boost demand.
Currency markets saw the U.S. dollar weaken against the Japanese yen, falling to 145.25 from 145.91. The euro ticked up to $1.1254 from $1.1220, reflecting investor caution as markets await clarity from the U.S.-China negotiations.
A Pause Before the Next Move?
This quiet stock market week may represent the calm before the storm. With global markets on edge over geopolitical developments and corporate performance, investors remain alert to any signals from this weekend’s trade talks.
Although volatility took a backseat this week, Wall Street knows it won’t last. The outcome of the Geneva discussions could influence policy direction, consumer prices, and the trajectory of markets worldwide. Until then, a cautious optimism prevails.
Featured Image – Freepik
