The stock market slipped on Friday as investors awaited much-anticipated trade talks between U.S. and Chinese officials this weekend. The 30-stock Dow lost 119.07 points, or 0.29%, to settle at 41,249.38. The S&P 500 edged down 0.07%, closing at 5,659.91, while the Nasdaq ended the session little changed at 17,928.92.
The talks with Chinese officials follow the U.S. and United Kingdom reaching a preliminary trade deal. Investors hope this will lead to more agreements being reached quickly. However, a 10% tariff rate on the U.K. appears to be the baseline.
President Trump mentioned on social media that an “80% Tariff on China seems right” ahead of negotiations led by Treasury Secretary Scott Bessent with Chinese counterparts in Switzerland this weekend. This signifies a de-escalation from the current 145% tariff on China, though it’s still higher than some anticipated. “Progress this week was encouraging, but we remain in the ebbs and flows of the news cycle, which is 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% in this period.
Susquehanna International Group sees a rosy outlook for Affirm, upgrading the “buy now, pay later” stock to a positive rating from neutral. Analyst James Friedman left his price target of $65 unchanged, representing approximately 20% upside from Affirm’s Thursday close. The stock has shed 24% this year.
For its last quarter, Affirm reported earnings of 1 cent per share, beating expectations of a 3-cent loss. The company’s revenue of $783 million was in line with consensus estimates. Friedman cited Affirm’s strong results as a catalyst for the upgrade, highlighting that Affirm Card volume grew 115%.
Wells Fargo found only 13 companies in the S&P 500 have withdrawn their earnings outlooks thus far in the current earnings season, which can be beneficial for investor sentiment. Equity analyst Christopher Harvey noted that this relatively short list of firms is a positive earnings season surprise.
Markets await trade talks outcome
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’s price target of $90, up from $75, represents 16% upside from the stock’s Thursday closing price. Shares of Tapestry have already soared 19% this year.
Morgan Stanley’s upgrade comes after Tapestry reported third-quarter adjusted earnings of $1.03 per share on revenue of $1.58 billion, beating FactSet’s estimates. Straton cited Tapestry’s tariff resilience and brand momentum as particularly advantageous for investors. Monster Beverage rose 2% on Friday, marking a new all-time high for the stock.
The energy drink company is the top-performing stock among current S&P 500 constituents, with a historic rise in shares. Total household credit and debit card spending only rose 1% year-over-year in April, according to Bank of America. On a monthly basis, card spending per household was flat.
Economist Aditya Bhave noted that spending was soft in categories such as airlines, clothing, and home improvement. GE Healthcare stands to benefit the most among large-cap medical technology stocks if the U.S. and China can agree on a trade deal, according to Bank of America. Shares of GE Healthcare have tumbled more than 12% this quarter, with investors concerned about the impact of tariffs.
However, a de-escalation of tariffs could significantly benefit the company. Energy stocks have been a bright spot, with the sector up about 0.8% on Friday. Stocks like Marathon Oil and ConocoPhillips were both up more than 2%, while Exxon Mobil and Chevron rose 1.8% and 1.6%, respectively.
This comes as both oil and natural gas prices saw increases. Several companies made headlines with notable movements in midday trading. Insulet surged more than 19% after first-quarter results beat estimates, both on the top and bottom lines.
The company also raised its full-year guidance for revenue growth. Overall, market participants remain keenly focused on the outcome of the upcoming U.S.-China trade talks, which could significantly influence market trajectories in the near term.
