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U.S. Equities Steady Ahead of Key U.S.-China Trade Talks in Switzerland

Markets remain calm as President Trump suggests reducing Chinese tariffs and investors await the first high-level negotiations since the trade war escalation.

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Overview

  • The S&P 500 fell 0.1% on Friday, ending the week down 0.5%, while the Dow and Nasdaq also posted slight weekly declines.
  • President Trump floated cutting tariffs on Chinese imports from 145% to 80%, with the decision delegated to Treasury Secretary Scott Bessent at the upcoming talks.
  • Saturday's U.S.-China meeting in Switzerland marks the first high-level trade negotiation since the tariff escalation began in April.
  • Investors and economists express concerns about potential recession risks if significant progress is not made in reducing tariffs.
  • Corporate earnings reports drove notable stock movements, with Lyft surging 27.3% and Insulet up 20.7%, while Expedia dropped 7.4% due to weaker-than-expected demand.