Stock market treads water as Wall Street awaits key weekend meeting between U.S. and China

Investors are keeping a close eye on the Trump administration’s efforts to ease trade tensions with key U.S. economic partners, as the markets remained relatively flat on Friday. The S&P 500 and Nasdaq Composite showed little movement, while the Dow Jones Industrial Average dipped slightly by 0.3%.

After a significant drop in early April following President Trump’s announcement of “Liberation Day” tariffs on most countries, stocks have managed to rebound. However, concerns are rising among investors about a potential slowdown in U.S. economic growth. Analyst Bret Kenwell from eToro USA highlighted the worry that weakening sentiment and confidence indicators could eventually impact hard data like retail sales, GDP, and employment.

Despite these concerns, Wall Street found some relief in the Trump administration’s recent efforts to de-escalate trade disputes. President Trump hinted at the possibility of reducing U.S. tariffs on China from 145% to 80%, and key officials are scheduled to engage in trade talks with Chinese representatives in Switzerland. Additionally, a trade pact framework was announced with the U.K., with Trump hailing it as a breakthrough that would benefit American goods in the British market.

However, skepticism remains among market watchers regarding the effectiveness of the U.K.-U.S. trade deal in alleviating global trade tensions. Analyst Giulia Bellicoso from Capital Economics expressed doubts about the deal’s impact on the economic outlook of both countries. Craig Singleton from the Foundation for Defense of Democracies also questioned the potential for significant progress in the upcoming U.S.-China trade talks, labeling them as preliminary discussions without a clear pathway to de-escalation.

The Associated Press contributed to this article, shedding light on the latest developments in the ongoing trade negotiations. As the markets continue to navigate the uncertainties surrounding trade policies, investors are advised to remain vigilant and stay informed about the evolving trade landscape.

Alain Sherter, a senior managing editor with CBS News, covers business, economics, money, and workplace issues for CBS MoneyWatch. Stay tuned for more updates on the latest market trends and trade developments from our team of experts.