Dow Futures have shown an upward trend on Friday, reflecting indications of a potential easing of tensions between China and the U.S., thereby creating an opportunity for discussions aimed at resolving the ongoing trade conflict. The forthcoming monthly U.S. jobs report is of significant importance, coinciding with the latest budget proposal from the Trump administration. Additionally, investors will be analyzing earnings reports from major technology firms Apple and Amazon.
The week’s influx of economic data reaches its peak on Friday with the publication of the Labor Department’s highly scrutinized employment report. Anticipations suggest a decline in job growth, influenced by the prevailing economic uncertainty stemming from President Donald Trump’s assertive tariff strategy. Nonfarm payrolls are expected to have risen by 138,000 jobs last month, following an increase of 228,000 in March, with the unemployment rate anticipated to remain steady at 4.2% during the same period. Average hourly earnings are projected to have increased by 0.3%, consistent with the gain observed in March, leading to an annual rise to 3.9% from 3.8%.
Despite the labor market’s ongoing resilience, employers exhibit a hesitance to part ways with employees, a consequence of the challenges faced in sourcing labor during and after the COVID-19 pandemic. However, cautionary indicators are beginning to emerge. The payrolls reading serves as a contemporary indicator of increased economic uncertainty in the U.S., albeit somewhat retrospective, following gross domestic product data that revealed an unexpected contraction in the economy during the first quarter.
U.S. stock futures experienced an uptick on Friday, as market sentiment improved following China’s indication of potential trade discussions with the U.S. This development has heightened optimism regarding a possible easing of the ongoing trade conflict between these two major economies. At 03:30 ET , the S&P 500 futures were up by 33 points, reflecting a 0.6% increase. Nasdaq 100 futures saw a gain of 72 points, or 0.4%, while Dow futures experienced an increase of 310 points, corresponding to a rise of 0.8%.
The primary Wall Street averages commenced the new month favorably on Thursday, propelled by robust figures from technology leaders Meta Platforms and Microsoft. All three indices are positioned to achieve their second consecutive week of gains. The S&P 500 is projected to increase by 1.4% this week, while the Dow Jones Industrial Average has risen by 1.6%, and the NASDAQ Composite shows a 1.9% gain. Market sentiment experienced an uptick on Friday following China’s announcement regarding the assessment of potential trade discussions with the United States. The Chinese commerce ministry indicated that Washington has communicated through multiple channels its interest in initiating talks.
China stated that if the U.S. seeks dialogue, it must demonstrate sincerity by rescinding the unilateral tariffs. China is currently subjected to substantial tariffs amounting to 145%, prompting a retaliatory response in the form of a 125% duty on goods imported from the United States. In this context, the Trump administration reinstated U.S. duty-free access for low-value shipments from China and Hong Kong on Friday, reverting to an executive order issued by President Donald Trump in February. This indicates that any trade agreement between the two largest economies globally will entail a protracted and intricate negotiation process.
In other developments, approximately two-thirds of the constituents of the S&P 500 have reported their results, with 76% exceeding earnings estimates. Quarterly results from the “mega-cap” tech giants continued after hours on Wednesday, and while both Apple and Amazon beat expectations, their cautious guidance disappointed investors.
Apple’s results for the first quarter of the year were generally solid; however, the iPhone maker has reduced its share buyback program by $10 billion. CEO Tim Cook has projected that tariffs may increase costs by approximately $900 million in this quarter. Cook also detailed modifications to the company’s supply chain aimed at mitigating the effects of U.S. President Donald Trump’s trade war. Anticipations were set for an increase in buybacks. “Knowing the company, this indicates that Tim Cook is hoarding cash for difficult times,” stated Thomas Monteiro, senior analyst at Investing.com. “While that’s not inherently problematic, it does indicate that the company lacks the same level of confidence in its near-term outlook as observed in prior quarters.”
Amazon, the e-commerce behemoth, announced its first-quarter cloud revenue growth on Thursday, while projecting operating income that fell short of expectations, leading to investor disappointment. Amazon Web Services, the company’s cloud division, reported a 16.9% rise in quarterly revenue, reaching $29.27 billion, marking its slowest growth rate in five quarters. Competitor Microsoft, in contrast, announced on Wednesday that it had surpassed expectations for its Azure cloud division. Both stocks experienced a decline in premarket trading, which negatively impacted sentiment after U.S. technology-related stocks, particularly those engaged in artificial intelligence, saw a significant increase on Thursday due to stronger-than-anticipated results from Microsoft and Meta Platforms in the prior session.
The budget proposal for the 2026 fiscal year is set to be unveiled by U.S. President Donald Trump on Friday, with plans to submit it to Congress, as stated by a White House official. The annual budget request from the White House encompasses economic projections alongside comprehensive proposals regarding the allocation of funds for each government agency for the fiscal year commencing on October 1. The Wall Street Journal indicated that Trump is anticipated to suggest a reduction in non-defense discretionary spending by $160 billion, focusing on cuts to environmental programs, renewable energy, education, and foreign aid, while increasing funding for border security and defense.
The reductions are a component of an initiative spearheaded by the recently formed Department of Government Efficiency, under the leadership of Elon Musk, with the objective of reducing expenditures by $150 billion in the upcoming fiscal year and $1 trillion in the long term. Trump’s proposal is anticipated to encounter considerable resistance in Congress, even with Republicans maintaining slim majorities in both chambers, thereby establishing a context for extended negotiations regarding spending priorities.
Oil prices experienced an uptick on Friday, concluding a challenging week with a sense of optimism regarding a potential easing of tensions in the ongoing trade conflict between China and the United States, the foremost global economies. At 03:30 ET, Brent futures increased by 0.1% to $62.20 per barrel, while U.S. West Texas Intermediate crude futures also saw a 0.1% rise, reaching $59.30 per barrel. On Friday, China’s commerce ministry announced that the nation is assessing the potential for trade discussions with the U.S. However, it underscored that any negotiations should be genuine and contingent upon the elimination of unilateral tariffs.
The remarks follow reports from state media earlier this week indicating that U.S. officials had initiated contact with China to commence trade negotiations. Both benchmarks are poised to record weekly losses exceeding 5%, driven by apprehensions that the ongoing trade war may propel the global economy towards recession and dampen oil demand, coinciding with the OPEC+ group’s plans to increase output.