Wall Street ended Friday in wait-and-see mode, with major indices posting modest losses as investors turned their focus toward the weekend’s high-level trade talks between the United States and China. After a week marked by tariff tensions and fresh diplomacy, markets are bracing for a potential shift in tone—one that could ripple across global supply chains and inflation expectations.
Friday’s market moves: Dow slides as caution sets in
The Dow Jones Industrial Average fell 119 points, or 0.29%, to close at 41,249. The S&P 500 slipped 0.07% to 5,659, while the Nasdaq finished flat at just under 17,929. All three benchmarks notched small weekly losses, with the S&P down half a percent.
Trade talks: “Substantial progress”, cautious optimism
Over the weekend, US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng concluded two days of trade negotiations in Geneva. Both sides described the discussions as “substantive” and “candid”, with a joint statement expected shortly. President Trump, who earlier floated an 80% tariff on Chinese goods, now says a “total reset” has been achieved—though the fine print remains to be seen.
The talks follow Trump’s preliminary deal with the UK last week and precede his Middle East tour, where major US investment deals are expected.
Looking ahead: Inflation, jobs and housing data in focus
The US Consumer Price Index lands on Wednesday and will be closely watched for signs of cooling or persistent inflation—potentially shaping the Federal Reserve’s next move.
In Australia, a flurry of data is due. Building approvals are out Tuesday, followed by lending indicators and the wage price index on Wednesday. On Thursday, labour force figures will be delivered.
Commodities and the dollar
WTI crude is trading 1.85% higher at US$61.02 a barrel.
Brent crude is trading 1.7% higher at US$63.91 a barrel.
Spot gold is trading 0.58% higher at US$3324.98 an ounce.
One Australian dollar is buying 64.19 US cents.
Futures
The SPI futures are pointing to an 16 point rise.
