In the early hours of trading on Friday, stocks experienced a notable uptick following two consecutive days of gains for major indexes. The S&P 500 and the tech-heavy Nasdaq Composite rose by 0.5% and 0.7%, respectively, just ten minutes after the opening bell. Meanwhile, the Dow Jones Industrial Average saw a modest increase of 0.3%. This upward momentum comes off solid gains from Thursday, when President Donald Trump announced a significant trade agreement with the U.K. and hinted at more deals to come.
As the market opened on Friday, the Dow was slightly up for the week, while the S&P 500 had dipped by 0.4% and the Nasdaq was down by 0.3%. If the major indexes manage to secure gains by the end of the week, it would mark a milestone of three consecutive weeks of growth, a feat not seen since October. This potential rally underscores investor optimism, especially amid ongoing discussions regarding tariffs.
Investors are particularly keen on any news related to tariffs on China, as highly anticipated trade talks are set to occur this weekend in Switzerland between U.S. and Chinese officials. President Trump remarked that these discussions could lead to significant changes, hinting that the current 145% tariffs on China might be reduced if negotiations proceed positively. This optimism is reflecting the market's anticipation of favorable outcomes from these talks.
Market participants are also keeping a close eye on remarks from several Federal Reserve officials slated to speak today. During its policy meeting on Wednesday, the Fed decided to maintain its benchmark interest rate, a move that has drawn criticism from Trump. Fed Chair Jerome Powell explained that while tariffs have increased the risks of higher inflation and unemployment, the central bank requires more data to assess how trade policy impacts the economy before making any adjustments to monetary policy.
In early trading, mega-cap tech stocks saw gains across the board, with Tesla (TSLA) leading the charge with a remarkable 5% increase. Other tech giants, including Apple (AAPL), Amazon (AMZN), Meta Platforms (META), and Broadcom (AVGO), each experienced approximately 1% gains. Notably, Microsoft (MSFT), Nvidia (NVDA), and Alphabet (GOOG) also edged higher, indicating a strong performance in the tech sector.
The earnings reporting calendar is relatively sparse; however, a few companies made significant moves on Friday morning following the release of their quarterly results. Social media platform Pinterest (PINS) surged by 10%, while cybersecurity provider Cloudflare (NET) increased by 7%. Conversely, travel booking platform Expedia (EXPE) saw a decline of 9%, and buy-now, pay-later service Affirm (AFRM) fell by 8%.
In the cryptocurrency realm, Bitcoin continued to gain traction after surging above $100,000 on Thursday for the first time since February. The digital currency recently traded at $103,200, rebounding from an overnight low of $101,300. Additionally, gold futures increased by 1.1% to reach $3,340 an ounce, following two days of declines. West Texas Intermediate futures, the U.S. crude oil benchmark, rose by 1% to $60.50 per barrel, approaching their highest levels of the month after hitting a four-year low last week.
