US Stock Futures Flicker Between Gains And Losses After Strong Three-Day Run: 'Tariffs Are Steering The Boat Again,' Says Expert
U.S. stock futures fluctuated between gains and losses on Friday, following a three-day winning streak. Major benchmark index futures were mixed in premarket trading.
The U.S. and U.K. sealed a bilateral trade deal, cutting tariffs, boosting industrial ties, and securing billions in new market access.
A central component of the trade agreement involves the U.S. significantly reducing tariffs on cars made in the UK, bringing them down from 25% to 10% and establishing an annual quota of 100,000 vehicles.
The U.K. will eliminate tariffs on American-made cars, including those from General Motors Co. (NYSE:GM) and Ford Motor Co. (NYSE:F), and expedite their passage through customs.
Meanwhile, the 10-year Treasury bond yielded 4.37% and the two-year bond was at 3.86%. The CME Group's FedWatch tool‘s projections show markets pricing an 82.9% likelihood of the Federal Reserve keeping the current interest rates unchanged in its June meeting.
| Futures | Change (+/-) |
| Dow Jones | -0.15% |
| S&P 500 | 0.07% |
| Nasdaq 100 | 0.17% |
| Russell 2000 | -0.23% |
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were slightly higher in premarket on Friday. The SPY was up 0.004% to $565.08, while the QQQ advanced 0.17% to $489.10, according to Benzinga Pro data.
Cues From Last Session:
Industrials, consumer discretionary, and energy sectors led a broad market rally on Thursday, propelling U.S. stocks higher. The Dow Jones was bolstered by the Donald Trump administration’s inaugural major trade agreement with the United Kingdom.
However, the health care and utilities sectors diverged from the positive trend, closing lower.
On the company-specific front, U.S. Foods Holding Corp. (NYSE:USFD) reported first-quarter earnings that fell short of expectations, while Sezzle Inc. (NASDAQ:SEZL) shares surged by 42% following the company’s release of better-than-anticipated first-quarter results and an upward revision of its FY25 guidance.
In terms of economic data, U.S. initial jobless claims saw a decline, dropping by 13,000 to 228,000 for the week ending May 3, slightly below market projections. 1 Conversely, U.S. labor productivity in the nonfarm business sector experienced a 0.8% decrease during the first quarter, slightly exceeding the estimated 0.7% drop.
The Dow Jones index advanced 255 points or 0.62% to 41,368.45, whereas the S&P 500 index rose 0.58% to 5,663.94. Nasdaq Composite ended 1.07% higher at 17,928.14, and the small-cap gauge, Russell 2000, climbed 1.85% to 2,026.41.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 1.07% | 17,928.14 |
| S&P 500 | 0.58% | 5,663.94 |
| Dow Jones | 0.62% | 41,368.45 |
| Russell 2000 | 1.85% | 2,026.41 |
Insights From Analysts:
According to Louis Navellier of Navellier & Associates, “Tariffs are steering the boat again.”
He said that Trump’s announcement of the U.S. striking a comprehensive agreement with the U.K. and Scott Bessent’s announcement of a meeting in Switzerland with China to discuss tariffs are propelling the market.
“This helps explain the long recovery rally since the Liberation Day announcement of tariffs on April 2nd. The fear of missing out on favorable agreements being reached has limited the number of sellers,” he said.
He added, “The upside story will be that the tariff agreements will result in mutually low tariffs, which should be generally beneficial for U.S. exporters, as Trump has contended all along.”
He also said that Trump announcing a definitive deal with the U.K. is an “important first step in reducing tariff fears.”
Meanwhile, Ed Yardeni or Yardeni Research agreed with the sentiment and added, “President Donald Trump will need to declare victories in his trade wars with multiple countries around the world sooner rather than later.”
Yardeni also explained that Trump and his fellow Republicans have to avoid a recession caused by his tariff wars. Otherwise, they risk losing their thin majorities in both houses of Congress later in 2026, as per Yardeni.
“The correction in the S&P 500 that started on February 19 ended on April 8. The S&P 500 now has regained almost all its losses since the April 2 close, just before it tanked during the Annihilation Days on April 3 and April 4,” he said.
According to Yardeni, the stock market will soon have “deals fatigue and tire of Trump’s declarations of victory.”
“We think the trade issue will be behind us by July or August. If so, then the focus should be on how much Trump’s tariff skirmishes weighed on the economy and earnings. We expect both will remain surprisingly resilient,” he added.
See Also: How to Trade Futures
Upcoming Economic Data
Here’s what investors will keep an eye on Friday:
- Fed Governor Michael Barr will speak at 5:55 a.m., New York Fed President John Williams will speak at 6:15 a.m., and Fed Governor Adriana Kugler will speak at 6:45 a.m. ET.
-Fed Governor Lisa Cook will speak at 6:45 a.m. ET.
- Richmond Fed President Tom Barkin speaks at 8:30 a.m., Fed Governor Christopher Waller and New York Fed President John Williams will speak on a panel at 11:30 a.m. ET.
- Fed Governor Michelle Bowman, St. Louis Fed President Alberto Musalem, and Fed Cleveland President Beth Hammack will speak on the panel at 7:45 p.m. ET.
Stocks In Focus:
- EchoStar Corp. (NASDAQ:SATS) fell 3.53% in premarket on Friday as it is expected to report earnings before the opening bell. Analysts expect a quarterly earnings loss of 88 cents per share on the revenue of $3.87 billion.
- Plains All American Pipeline LP (NASDAQ:PAA) was up 1.18% as Wall Street expects it to report earnings of 43 cents per share on revenue of $14.26 billion before the opening bell.
- LYFT Inc. (NASDAQ:LYFT) jumped 7.31% after reporting better-than-expected earnings for the first quarter and announcing a $750 million share buyback plan.
- Sensata Technologies Holding PLC (NYSE:ST) rose 9.13% after reporting better-than-expected first-quarter financial results and issuing strong guidance for the second quarter.
- Coinbase Global Inc. (NASDAQ:COIN) dropped 1.26% after reporting worse-than-expected first-quarter financial results. Coinbase reported first-quarter total revenue of $2.03 billion, missing a Street consensus estimate of $2.12 billion.
- Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) was 2.20% higher after its April sales surged on the back of rushed orders following the levy of U.S. tariffs.
- Twin Vee Powercats Co. (NASDAQ:VEEE) plunged 37.85% after it announced the fundraise of $3 million by pricing its public offering of 750,000 shares of common stock at $4.00 per share.
Commodities, Gold, And Global Equity Markets:
Crude oil futures were trading higher in the early New York session by 1.59% to hover around $60.86 per barrel.
Gold Spot US Dollar rose 0.65% to hover around $3,327.68 per ounce. Its last record high stood at $3,500.33 per ounce. The U.S. Dollar Index spot was lower by 0.26% at the 100.3830 level.
Asian markets were mixed on Friday as India's S&P BSE Sensex, South Korea's Kospi, and China’s CSI 300 index fell. While Japan's Nikkei 225, Australia's ASX 200, and Hong Kong's Hang Seng index rose. European markets were higher in early trade.
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