The Dow dropped more than 100 points on Friday as investors eagerly awaited upcoming trade talks between U.S. and Chinese officials this weekend. The 30-stock Dow lost 119.07 points, or 0.29%, settling at 41,249.38. The S&P 500 inched down by 0.07%, closing at 5,659.91, and the Nasdaq ended the session little changed, finishing at 17,928.92.
The trade talks follow a preliminary trade deal between the U.S. and the United Kingdom, fueling investor optimism for further agreements. However, there remains uncertainty as discussions progress. President Trump has floated an “80% tariff on China seems right” ahead of the talks led by Treasury Secretary Scott Bessent with Chinese counterparts in Switzerland this weekend.
This proposal is somewhat lower than the current 145% tariff on China but still higher than market expectations. “Progress this week was encouraging, but we remain in the ebbs and flows of the news cycle, causing market reactions. We are likely in a sideways period of volatility until we begin to get tangible outcomes,” said Mark Hackett, chief market strategist at Nationwide.
On the week, the S&P 500 slid about 0.5%, while the Nasdaq dropped roughly 0.3%. The Dow fell almost 0.2%. Susquehanna International Group upgraded the “buy now, pay later” stock Affirm to a positive rating from neutral.
Analyst James Friedman maintained his price target of $65, representing approximately 20% upside from Affirm’s Thursday close.
Trade talk uncertainties impact markets
Despite the stock shedding 24% this year, Affirm reported earnings of 1 cent per share, beating expectations and showing strong growth in various segments.
Morgan Stanley upgraded shares of Tapestry—which owns fashion brands Coach, Kate Spade, and Stuart Weitzman—to an overweight rating from equal weight. Analyst Alex Straton increased the price target to $90, noting the stock’s resilience to tariffs and strong brand momentum. Tapestry reported third-quarter adjusted earnings of $1.03 per share on revenue of $1.58 billion, beating FactSet estimates.
The energy drink company Monster Beverage hit a fresh all-time high on Friday, up 2%. It remains the top-performing stock among current S&P 500 constituents, with a staggering increase since its history back to 1995. According to Bank of America, GE Healthcare stands to benefit the most among large-cap medical technology stocks if a U.S.-China trade deal is reached.
Shares have dropped more than 12% this quarter amid tariff concerns. Energy stocks have outperformed, with oil and natural gas prices pushing higher. The energy sector was up about 0.8%, driven by increases in oil and natural gas futures.
April showed weak spending trends with only a 1% year-over-year increase in credit and debit card spending, according to Bank of America. Clothing, airline, and home improvement categories showed softness, although some categories saw increased spending ahead of potential tariff impacts. Overall, the market remains sensitive to trade talk developments, with volatility likely to persist until more definitive outcomes are achieved.
