Wall Street Indexes Experience Mixed Trading Amid Trade Uncertainty

Wall Street’s primary indexes showed little movement in Friday’s volatile trading session, as investors grappled with ambiguity surrounding U.S.-China trade relations, despite emerging indications of a possible conciliatory approach from Beijing.

In positive developments, Alphabet shares surged by 3.6% following the release of favorable first-quarter results by the Google parent company. This performance alleviated some investor concerns regarding returns on substantial investments focused on artificial intelligence.

The overall market sentiment, however, became uneasy after U.S. President Donald Trump stated in an interview that he would consider it a “total victory” if the United States imposed tariffs as high as 50% on foreign imports within a year.

President Trump also mentioned that his administration is engaged in discussions with China to reach a tariff agreement and that Chinese President Xi Jinping had contacted him. However, Beijing has disputed that negotiations are currently underway.

These conflicting reports counteracted some optimism generated by China’s decision to grant certain U.S. imports exemptions from its significant 125% tariffs, according to information received by affected businesses.

Market Analysts Weigh In

“The market is largely in a wait-and-see mode, observing the actual progress of events,” noted Clayton Allison, portfolio manager at Prime Capital Financial.

“Everyone is attempting to discern the truth, distinguishing between genuine developments and political maneuvering. It increasingly appears that headline volatility is the dominant factor.”

Market Performance Overview

At 9:41 a.m. ET, the Dow Jones Industrial Average decreased by 45.20 points, or 0.11%, to reach 40,048.20. The S&P 500 increased by 6.09 points, or 0.11%, to reach 5,490.86, and the Nasdaq Composite increased by 29.72 points, or 0.17%, to reach 17,195.76.

Alphabet’s first-quarter results also boosted social media companies, with Meta Platforms increasing by 1.6%. The communication services sector experienced a 1.5% gain.

Most megacap and growth stocks also saw increases, bolstering the tech-heavy Nasdaq.

According to Allison, Alphabet is “overcoming the perception that it is being adversely affected by the ongoing trade war.”

Conversely, Intel experienced a 7.3% decline following the chipmaker’s bleak forecast, while T-Mobile fell by 8.2% after reporting fewer wireless subscriber additions than anticipated in the first quarter. Both companies were among the largest drags on the S&P 500.

On Thursday, indexes rose for the third consecutive session, marking the S&P 500’s most significant winning streak since President Trump’s April 2 tariff announcement. They were also poised for substantial weekly gains.

The S&P 500 has increased by 4% for the week thus far, while the Nasdaq Composite and the Dow have risen by 5.6% and 2.4%, respectively. These gains were primarily driven by expectations of easing U.S.-China trade tensions, President Trump’s reversal on threats to dismiss the Federal Reserve head, and some positive corporate earnings reports.

However, caution persists due to indications of a deteriorating economic outlook and the adverse impact of tariffs on company earnings.

The benchmark index remains below the levels seen prior to the April 2 announcement and is more than 10% below its February record close.

AbbVie increased by 2% after the drugmaker revised its annual profit forecast upward, driven by strong sales of its newer immunology drugs.

Declining issues outnumbered advancing issues 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 recorded three new 52-week highs and three new lows, while the Nasdaq Composite recorded 14 new highs and 21 new lows.