US Stocks Rise On Trade Hopes Before US-China Talks: Markets Wrap

Wall Street is ending the week on a cautiously optimistic note, with stocks rising amid hopes that tensions between the US and its top trading partners will start easing just as the world’s two biggest economies get ready to kickstart their negotiations.

Equities wiped out their losses for the week, with the S&P 500 rising for a third consecutive session. Speculation grew that while talks between China and American officials are unlikely to result in a comprehensive agreement at this stage, they could at least represent further progress in terms of defusing trade hostilities. Bonds edged mildly higher, while the dollar halted a two-day rally.

Donald Trump floated an 80% tariff on China ahead of negotiations due to begin Saturday as he urged Beijing to do more to open their markets to US goods. In a social media post, the president also said that “many trade deals in the hopper, all good (GREAT!) ones!”

“Trade anticipation should drive trading today and specifically any ‘chatter’ about expectations for this weekend’s US/China trade meeting in Geneva,” said Tom Essaye at The Sevens Report.

The S&P 500 rose 0.4%. The Nasdaq 100 added 0.5%. The Dow Jones Industrial Average gained 0.2%.

The yield on 10-year Treasuries fell one basis point to 4.37%. The Bloomberg Dollar Spot Index slid 0.3%.

Corporate Highlights:

• US prosecutors and regulators investigating a $32 million deal between CrowdStrike Holdings Inc. and a technology distributor are probing what senior company executives may have known about it and are examining other transactions made by the cybersecurity firm, according to two people familiar with the matter.

• Semiconductor Manufacturing International Corp., China’s leading chipmaker, warned sales could fall as much as 6% this quarter because of production disruptions.

• Taiwan Semiconductor Manufacturing Co.’s revenue jumped 48% in April, underscoring how electronics firms scrambled to acquire essential components before global tariffs took effect.

• Expedia Group Inc. cut its full-year outlook for gross bookings and revenue after it saw weaker-than-expected domestic and inbound travel demand in the US at the start of the year.

• Lyft Inc. reported better-than-expected gross bookings in the first quarter, drawing a sharp contrast with the disappointing results issued by its much-larger ride-hailing rival Uber Technologies Inc. earlier this week.

• Pinterest Inc.’s second-quarter revenue guidance topped estimates at the midpoint, further easing concerns of an advertising slowdown.

• Coinbase Global Inc.’s first-quarter revenue jumped while profit declined as the largest US crypto exchange navigated the volatile price swings of the digital asset market.

• DraftKings Inc. rose as investors looked past a disappointing first quarter hurt by a March Madness basketball tournament that went especially well for gamblers.

• Sweetgreen Inc. cut its annual guidance, citing a sharp decline in consumer sentiment following the announcement of new tariffs in the US.

• Illumina Inc. cut its full-year adjusted profit guidance for the second time in three months as it grapples with the impact of tariffs and China banning imports of its gene-sequencing machines.

• IAG SA announced its biggest order yet for widebody jets, doubling down on long-haul demand with a $10 billion fleet investment that aims to help sustain its earnings momentum.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.4% as of 9:31 a.m. New York time

• The Nasdaq 100 rose 0.5%

• The Dow Jones Industrial Average rose 0.2%

• The Stoxx Europe 600 rose 0.5%

• The MSCI World Index rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.3%

• The euro rose 0.3% to $1.1261

• The British pound rose 0.4% to $1.3294

• The Japanese yen rose 0.6% to 145.07 per dollar

Cryptocurrencies

• Bitcoin rose 0.4% to $103,041.84

• Ether rose 7.3% to $2,345.08

Bonds

• The yield on 10-year Treasuries declined one basis point to 4.37%

• Germany’s 10-year yield advanced three basis points to 2.56%

• Britain’s 10-year yield advanced three basis points to 4.57%

Commodities

• West Texas Intermediate crude rose 0.9% to $60.46 a barrel

• Spot gold rose 1% to $3,338.65 an ounce