Wall Street Indexes Experience Mixed Trading Amid Trade Uncertainty

Major Wall Street indexes displayed mixed performance in Friday’s trading session, influenced by ongoing uncertainties surrounding trade relations between the U.S. and China, despite indications of a potential softening of stance from Beijing.

Offsetting this, Alphabet saw a surge of 3.6% following the release of positive first-quarter financial results by the Google-affiliated entity. This development alleviated some concerns among investors concerning the returns on substantial investments in artificial intelligence.

However, market sentiment turned anxious after U.S. President Donald Trump commented that imposing tariffs as high as 50% on foreign imports a year from now would be a “total victory”.

Trump also mentioned that his administration is engaged in discussions with China aimed at achieving a tariff agreement and that he had received a call from Chinese President Xi Jinping. However, Beijing has refuted claims that negotiations are currently in progress.

These contradictory statements counteracted some of the optimism generated by China’s decision to grant certain U.S. imports exemptions from its substantial 125% tariffs, according to notifications received by businesses.

Market Analyst Comments

According to Clayton Allison, portfolio manager at Prime Capital Financial, the market is largely adopting a wait-and-see approach to observe the actual progress of events.

Allison added that there is a sense of uncertainty in discerning fact from political rhetoric, contributing to headline-driven volatility.

Market Performance Overview

As of 9:41 a.m. ET, the Dow Jones Industrial Average decreased by 45.20 points, or 0.11%, reaching 40,048.20. Meanwhile, the S&P 500 experienced a gain of 6.09 points, or 0.11%, to stand at 5,490.86, and the Nasdaq Composite rose by 29.72 points, or 0.17%, to reach 17,195.76.

The strong first-quarter results from Alphabet positively influenced social media companies, with Meta Platforms increasing by 1.6%. The communication services sector demonstrated growth, rising by 1.5%.

Most major technology and growth stocks also experienced gains, supporting the tech-heavy Nasdaq.

Allison noted that Alphabet’s performance is overcoming concerns about the ongoing trade war’s impact.

Conversely, Intel declined by 7.3% following the chipmaker’s disappointing forecast, while T-Mobile decreased by 8.2% due to lower-than-expected wireless subscriber additions in the first quarter. These were among the primary factors weighing down the S&P 500.

On Thursday, the indexes recorded their third consecutive session of gains – marking the strongest winning streak for the S&P 500 since Trump’s “Liberation Day” tariff announcement on April 2 – and were poised for substantial weekly advances.

The S&P 500 has increased by 4% for the week, while the Nasdaq Composite and the Dow have grown by 5.6% and 2.4%, respectively, driven primarily by hopes of reduced U.S.-China trade tensions, Trump’s reversal on threats to dismiss the Federal Reserve head, and positive corporate earnings reports.

Nevertheless, caution remains high amidst indicators of a deteriorating economic outlook and the adverse effects of tariffs on company earnings.

The benchmark index continues to remain below levels seen before the April 2 announcement, and it is more than 10% below its record close in February.

AbbVie saw a rise of 2% after the drug manufacturer increased its annual profit forecast, bolstered by robust sales of its novel immunology drugs.

The number of declining issues exceeded advancers by a ratio of 1.36-to-1 on the NYSE and by a ratio of 1.63-to-1 on the Nasdaq.

The S&P 500 reported three new 52-week highs and three new lows, while the Nasdaq Composite recorded 14 new highs and 21 new lows.