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Stocks Waver as Investors Await US-China Trade Talks
New York — May 9, 2025 —
On Friday, stocks wavered as investors awaited the upcoming United States-china trade discussions, causing mixed trading. The talks, set for the weekend, follow a preliminary agreement between the U.S. and the U.K. Moreover,an 80% tariff on China is being discussed,but the length is uncertain. For more expert analysis, read on, as this situation unfolds.
Stocks Waver as Investors Await US-China Trade Talks
may 9, 2025
Market Snapshot
Stocks experienced a day of mixed trading on Friday, as investors remained cautious ahead of crucial trade negotiations between the United States and China scheduled for the weekend.
- The S&P 500 hovered near the flatline.
- The Dow Jones Industrial Average declined by 101 points,a 0.2% decrease.
- The Nasdaq Composite saw a slight dip of less than 0.1%.
Weekly Performance
Here’s how the major indexes are shaping up for the week:
- The S&P 500 is on pace for a 0.7% loss.
- The nasdaq is tracking towards a loss of approximately 0.6%.
- The Dow is down about 0.2%.
Trade Winds Blowing
The upcoming discussions between U.S. and Chinese representatives follow a preliminary trade agreement between the U.S. and the United Kingdom. Investors are optimistic that this initial deal could pave the way for further agreements. However, a 10% tariff rate on the U.K. seems to be the starting point for global trade negotiations.
President’s Take
President Trump addressed the trade situation on Truth Social, stating, Many Trade Deals in the hopper, all good (GREAT!) ones!
This message came a day after the announcement of the preliminary trade agreement with the U.K., the first such deal since the “reciprocal” tariff announcement in early april.
The president also suggested an 80% Tariff on China seems right
on Truth Social,ahead of the talks in Switzerland lead by Treasury Secretary Scott bessent.
Tariff Realities
While an 80% tariff would represent a decrease from the current 145% tariff on China, it remains higher than anticipated by many observers. Bloomberg News had reported that the rate might be lowered to below 60% this week. The duration of the proposed 80% tariff – whether long-term or temporary – remains unclear.
expert Analysis
Mark Hackett,chief market strategist at Nationwide,offered this perspective:
Progress this week was encouraging,but we remain in the ebbs and flows of the news cycle,which is causing market reactions. We are likely in a sideways period of volatility until we begin to get tangible (calculable) outcomes.
Mark Hackett, Chief Market Strategist at Nationwide
Frequently Asked Questions
- What is a tariff?
- A tax on imported goods.
- Why are trade talks meaningful?
- They can lead to agreements that affect global economic growth.
- What is market volatility?
- The degree of variation of a trading price series over time.
