Catenaa, Friday, May 02, 2025-US stock futures advanced Thursday evening after China signaled a willingness to resume trade negotiations with the United States, offering a potential reprieve in escalating tariff tensions.
Futures tied to the S\&P 500 rose 0.68%, while the Dow Jones Industrial Average futures jumped 337 points, or 0.82%.
The Nasdaq 100 futures gained 0.32%.
Investors welcomed the diplomatic overture, which comes amid mounting pressure from corporate America over rising tariffs.
Apple and Amazon also cited trade policy and tariffs as headwinds in their earnings reports Thursday, with shares falling 4% and 2% respectively in extended trading.
Wall Street is also digesting mixed earnings reports and bracing for April’s key employment data, due Friday. Economists expect 133,000 jobs were added last month, a sharp slowdown from March’s 228,000. Unemployment is forecast to hold steady at 4.2%.
Despite macroeconomic worries, major indexes are poised for a second consecutive weekly gain.
The S&P 500 is up 1.4%, the Dow is tracking a 1.6% rise and the Nasdaq is on pace for a 1.9% gain this week.
Earnings momentum has also fueled market optimism. With nearly two-thirds of S\&P 500 firms reporting, 76% have beaten profit estimates, according to FactSet.
However, retail investor sentiment remains cautious.
According to the American Association of Individual Investors bullishness stayed below average for a 16th week, while pessimism climbed,
However, economists caution that even best-case outcomes in trade talks may not eliminate business uncertainty amid rising recession risk and constrained monetary policy options.
