U.S. stocks closed nearly flat as investors turned cautious before weekend trade talks with China and booked some profits from the stock market’s recent rally back to early April levels, avoiding taking any big new positions.
President Donald Trump said on Friday in a social media post “80% Tariff on China seems right! Up to Scott B,” referring to Treasury Secretary Scott Bessent.
An 80% tariff is down from a levy as high as 145% currently but still higher than some forecasts for 50% to 60%, according to Tom Essaye, founder and president of Sevens Research Report. Bessent and U.S. Trade Representative Jamieson Greer are slated to meet with their Chinese counterparts in Switzerland over the weekend.
On Thursday, Trump said he expects substantive negotiations between the U.S. and Beijing on the trade front this weekend and wouldn’t be surprised if a deal was reached.
Trump also reiterated this morning “Many Trade Deals in the hopper, all good (GREAT!) ones!”
India had offered to slash its tariff gap with the U.S. to less than 4% from nearly 13% now, in exchange for an exemption from Trump’s tariffs, Reuters reported, citing sources.
The blue-chip Dow lost 0.29%, or 119.07 points, to 41,249.38; the broad S&P 500 dipped 0.07%, or 4.03 points, to 5,659.91; and the tech-heavy Nasdaq was flat at 17,928.92. All three indexes were just lower for the week.
The 10-year Treasury yield rose to 4.386%.
Trump’s comments come after he announced a preliminary trade agreement with the U.K. that would keep in place a 10% baseline tariff on the U.K. Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to U.S. goods.
The U.K. agreement, the first deal the Trump administration has announced, has boosted sentiment that more trade deals are imminent, and stocks rallied on the news.
Trump’s team has set a list of roughly 20 partners as the focus of early negotiations, according to Bloomberg, citing people familiar with the matter.
Corporate news
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Buy now pay later company Affirm issued sales guidance for the last three months of its fiscal year that fell short of Wall Street estimates. Shares dropped 14.47%.
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Pinterest issued better-than-expected second-quarter sales guidance. Revenue in the first three months of the year also topped analysts’ estimates. Shares rose 4.84%.
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Cryptocurrency exchange Coinbase reported weaker-than-expected revenue in the first three months of the year. The stock fell 3.48%
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Rideshare company Lyft reported better-than-expected gross bookings in the first three months of the year. Shares soared 28.08%.
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Sweetgreen, an eatery, cut its annual guidance, citing a sharp decline in consumer sentiment following the announcement of new U.S. tariffs. Shares plunged 16.09% and hit a 52-week low.
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Online travel platform Expedia missed quarterly revenue estimates. The stock dropped 7.3%.
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Ad firm Trade Desk’s results in the first three months of the year beat Wall Street’s expectations. Shares jumped 18.6%.
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Monster Beverage missed revenue forecasts in its first three months of the year. Shares rose 1.43%.
Cryptocurrency
Senate Democrats on Thursday blocked a bill, dubbed the GENIUS Act, that would have introduced some regulations on stablecoins, or digital currencies that are pegged to the value of a specific asset. In this case, they were stablecoins linked to the U.S. dollar.
The lawmakers who voted against the bill said it did not go far enough to safeguard against money laundering, among other issues.
Bitcoin turned lower, too, last down 0.02% at $103,177.00, but still holding above the key $100,000 mark.
This story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: US stocks near unchanged, awaiting US-China trade talks this weekend
