Dow Futures experienced a slight increase following a session characterized by mixed trading. Concerns persist regarding potential developments in the trade narrative, even in light of a recent accord between the U.S. and China. However, the agreement has prompted Barclays to retract its forecast of a U.S. recession occurring later this year. Investors are shifting their attention to an impending consumer sentiment survey, which has experienced a significant decline in recent months attributed to concerns stemming from tariffs. U.S. stock futures indicated an upward trajectory on Friday. The Dow futures contract rose by 152 points, or 0.4%, while S&P 500 futures gained 16 points, or 0.3%, and Nasdaq 100 futures increased by 50 points, or 0.2%.

The primary indices on Wall Street experienced a varied performance on Thursday, as market participants expressed caution regarding the potential inadequacy of the recent trade truce between the U.S. and China to fully alleviate the growth anxieties triggered by President Donald Trump’s assertive tariff policies. Walmart warned that the elevated U.S. levies will force the low-cost retail giant to raise prices in the coming weeks — an admission that some analysts flagged could soon be echoed by other companies.

In other developments, markets were assessing a new set of economic indicators that revealed an unanticipated decline in producer prices and a weakening in core retail sales. “April retail sales suggest that pre-emptive buying to get ahead of tariff-related price hikes faded quickly after a March spending surge,” stated James Knightley, Chief International Economist at  NG, in a note to clients. Meanwhile, a subdued producer price index suggests that, at this juncture, firms are opting to absorb elevated costs within their profit margins. “That may not persist for an extended period.”

Barclays has adjusted its U.S. growth forecasts upward in light of the trade agreement between Washington and Beijing, indicating that the world’s largest economy is unlikely to enter a recession later this year, according to a note released late Thursday. The current expectation is for the U.S. economy to expand by 0.5% this year and 1.6% next year, an increase from earlier projections of -0.3% and 1.5%, respectively. Barclays has raised its growth expectations for the euro area, attributing this adjustment to diminished uncertainty and a more favorable economic environment. The current forecast indicates stagnant economic growth for this year, in contrast to the previously anticipated contraction of 0.2%. Barclays maintains its outlook for a technical recession in the eurozone during the latter half of 2025, albeit with a contraction in growth that is anticipated to be less severe than earlier projections. “Overall, we maintain a pessimistic view regarding the growth prospects in the euro area due to persistently high levels of uncertainty, coupled with the ongoing negotiations on reciprocal tariffs between the European Union and the U.S. which remain at a technical stage, showing no indications of advancement,” Barclays stated in a note.

On Friday, the economic calendar appears to be relatively sparse, with attention directed towards a preliminary reading of the University of Michigan’s consumer sentiment survey. Forecasts indicate that the May reading is expected to show a modest increase, following a decline in April. Amid escalating concerns regarding tariffs, the survey indicates a decline in household optimism over recent months, alongside heightened expectations for a surge in inflationary pressures. Nonetheless, there remains ongoing discussion regarding the extent to which this so-called “soft data” accurately represents the economic landscape, especially in light of the Federal Reserve’s observations last week indicating signs of greater resilience against potential tariff challenges.

Applied Materials experienced a decline in after-hours trading following the announcement of sales figures that fell short of expectations in its largest segment. Revenue from its semiconductor systems unit, which constitutes the largest segment of its total sales, reached $5.26 billion, falling short of estimates of $5.32 billion. California-based Applied is contending with recent U.S. restrictions on the export of certain chip manufacturing equipment to China, which represents its largest foreign market. Revenue from the country constituted approximately 25% of total sales in the fiscal second quarter, a decline from 43% in the same period last year. In the quarter ending March 31, Applied reported total revenue of $7.10 billion, compared to expectations of $7.13 billion. Adjusted per-share income stood at $2.39, surpassing analysts’ expectations of $2.31. For its third quarter, Applied provided guidance for revenue of $7.20 billion, with a variance of plus or minus $500 million. CFO Brice Hill remarked on a “dynamic economic and trade environment,” yet indicated that the firm has not experienced a “significant” shift in demand.

Gold prices declined and appeared set to record significant weekly losses, as the easing of trade tensions between the U.S. and China enhanced risk appetite and diminished the appeal of gold as a safe haven. Market participants were observed securing substantial gains in bullion, as prices retreated from their recent peaks. The yellow metal faced downward pressure this week due to the strengthening of the dollar and the increase in U.S. Treasury yields. Spot gold decreased by 1% to $3,208.56 per ounce, whereas gold futures for June declined by 0.5% to $3,211.06 per ounce as of 03:35 ET. Spot prices experienced a decline of approximately 3.2% for the week, marking their most significant decrease since early November 2024.