US stock futures largely steady after record run for S&P 500, Nasdaq
At 06:50 a.m. ET, Dow E-minis were up 68 points, or 0.15%, S&P 500 E-minis were up 8.25 points, or 0.13%, and Nasdaq 100 E-minis were up 10.5 points, or 0.04%.
The blue-chip Dow fell 0.7% in Thursday's session, but remained close to its all-time high, last hit in December.
All three major indexes were poised to cap the week on a high note, as fresh signs of progress emerged on deals between the United States and its trading partners including Japan, Indonesia and the Philippines, which helped propel markets to new highs.
Hopes for an agreement with the European Union were building, while negotiations with South Korea gathered steam ahead of the fast-approaching August 1 deadline. Investors are hoping for a resolution by that date which could sidestep hefty U.S. import tariffs.
The markets' record run was also aided by a wave of upbeat second-quarter earnings. Of the 152 companies in the S&P 500 that reported earnings as of Thursday, 80.3% reported above analyst expectations, according to data compiled by LSEG.
However, there were a few setbacks this week. Heavyweights Tesla (TSLA.O), opens new tab and General Motors (GM.N), opens new tab stumbled and were on track for their steepest weekly declines in nearly two months.
Tesla's slide followed CEO Elon Musk's warning of tougher quarters ahead as U.S. EV subsidies dwindle, while General Motors took a hit after absorbing a $1.1 billion blow from President Donald Trump's sweeping tariffs in its second quarter earnings.
Intel (INTC.O), opens new tab dropped 7.8% in premarket trading on Friday after the chipmaker forecast steeper third-quarter losses than Wall Street had estimated and announced plans to slash jobs.
"Tariff headlines are driving market risk sentiment fuelling a risk-on mood this week. However, some volatility near the August 1st deadline remains possible," a group of analysts led by Adam Kurpiel at Societe Generale said.
All eyes will be on the U.S. Federal Reserve next week when policymakers gather for a closely watched meeting. Wall Street is betting they will hit the pause button again on interest rates while sizing up tariff-fueled inflation.
But the central bank isn't just facing economic headwinds — politics is also increasingly in the mix as Trump continues to ramp up his pressure campaign for lower rates after a rare visit to the Fed's headquarters on Thursday.
A frequent critic of Fed Chair Jerome Powell, Trump has openly floated the idea of replacing him with someone more dovish — a stance that analysts noted is nudging investors to start pricing in looser monetary policy.
According to CME's FedWatch tool, traders now see a nearly 60% chance of a rate cut as soon as September.
Among other stocks, Newmont (NEM.N), opens new tab added 2.1% after the gold miner surpassed Wall Street expectations for second-quarter profit.
Health insurer Centene (CNC.N), opens new tab posted a surprise quarterly loss, sending its shares tumbling 10%.
Paramount Global (PARA.O), opens new tab rose 1.3% after U.S. regulators approved its $8.4 billion merger with Skydance Media.
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The Guardian
15 minutes ago
- The Guardian
First Thing: US-EU trade deal is a ‘dark day' for Europe, says French PM
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The Guardian
15 minutes ago
- The Guardian
Musk hails $16.5bn Samsung deal to supply Tesla with AI chips
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BBC News
15 minutes ago
- BBC News
US-EU deal winners and losers
The US and EU have struck what is being billed as the largest trade deal in history, after talks in actually resembles the framework for an agreement rather than a full trade deal, with details still the headline figures announced by President Donald Trump and EU chief Ursula von der Leyen do offer clues about which sectors and groups could be hit hardest or have most to reaction live Trump - winner After promising new trade deals with dozens of countries, Trump has just landed the biggest of them looks to most commentators that the EU has given up more, with instant analysis by Capital Economics suggesting a 0.5% knock to will also be tens of billions of dollars pouring into US coffers in import the glowing headlines for Trump may not last long if a slew of economic data due later this week show that his radical reshaping of the US economy is on inflation, jobs, growth and consumer confidence will give a clearer picture on whether Trump's tariffs are delivering pain or gain. US consumers - loser Ordinary Americans are already aggrieved at the increased cost of living and this deal could add to the burden by hiking prices on EU not as steep as it could have been, the hurdle represented by a 15% tariff rate is still significant, and it is far more pronounced than the obstacles that existed before Trump returned to are taxes charged on goods bought from other countries. Typically, they are a percentage of a product's value. So, a 15% tariff means that a $100 product imported to the US from the EU will have a $15 dollar tax added on top - taking the total cost to the importer to $ who bring foreign goods into the US have to pay the tax to the government, and they often pass some or all of the extra cost on to customers. Markets - winner Stock markets in Asia and Europe rose on Monday after news emerged of the deal the framework, the US will levy a 15% tariff on goods imported from the EU. While this rate is significant, it is less than what it could have been and at least offers certainty for agreement is "clearly market-friendly, and should put further upside potential into the euro", Chris Weston at Pepperstone, an Australian broker, told AFP. European solidarity - loser The deal will need to be signed off by all 27 members of the EU, each of which have differing interests and levels of reliance on the export of goods to the some members have given the agreement a cautious welcome, others have been critical - hinting at divisions within the bloc, which is also trying to respond to other crises such as the ongoing war in Ukraine.A big Trump win but not total defeat for BrusselsFrench Prime Minister Francois Bayrou commented: "It is a dark day when an alliance of free peoples, brought together to affirm their common values and to defend their common interests, resigns itself to submission."He was joined by at least two other French government ministers as well as Viktor Orban, the Hungarian leader, who said that Trump "ate von der Leyen for breakfast". Carmakers in Germany - loser The tariff faced by importers bringing EU cars to the US has been nearly halved, from the rate of 27.5% that was imposed by Trump in April to a new rate of 15%.Cars are one of the EU's top exports to the US. And as the largest manufacturer of cars in the EU - thanks to VW, Mercedes and BMW - Germany will have been watching leader, Friedrich Merz, has welcomed the new pact, while admitting that he would have welcomed a "further easing of transatlantic trade".That downbeat sentiment was echoed by the German carmaking trade body, the VDA, which warned that even a rate of 15% would "cost the German automotive industry billions annually". Carmakers in the US - winner Trump is trying to boost US vehicle production. American carmakers received a boost when they learned that the EU was dropping its own tariff on US-made cars from 10% to 2.5%. Theoretically that could result in more American cars being bought in could be good for US sales overseas, but the pact is not all good news when it comes to domestic sales. That is down to the complex way that American cars are put of them are actually assembled abroad - in Canada and Mexico - and Trump subjects them to a tariff of 25% when they are brought into the US. That compares with a lower tariff rate of 15% on EU vehicles. So US car makers may now fear being undercut by European manufacturers. EU pharmaceuticals - loser There is confusion around the tariff rate that will be levied on European-made drugs being bought in the US. The EU wants drugs to be subject to the lowest rate possible, to benefit said pharmaceuticals were not covered by the deal announced on Sunday, under which the rate on a number of products was lowered to 15%. But von der Leyen said they were included, and a White House source confirmed the same to the scenario will represent disappointment for European pharma, which initially hoped for a total tariffs exemption. The industry currently enjoys high exposure to the US marketplace thanks to products like Ozempic, a star type-2 diabetes drug made in has been highlighted in Ireland, where opposition parties have pointed out the importance of the industry and criticised the damaging effect of 'not celebrating' Trump's EU deal US energy - winner Trump said the EU will purchase $750bn (£558bn, €638bn) in US energy, in addition to increasing overall investment in the US by $600bn."We will replace Russian gas and oil with significant purchases of US LNG [liquified natural gas], oil and nuclear fuels," said Von der will deepen links between European energy security and the US at a time when it has been pivoting away from importing Russian gas since its full-scale invasion of Ukraine. Aviation industry in EU and US - winner Von der Leyen said that some "strategic products" will not attract any tariffs, including aircraft and plane parts, certain chemicals and some agricultural means firms making components for aeroplanes will have friction-free trade between the huge trading added that the EU still hoped to get more "zero-for-zero" agreements, notably for wines and spirits, in the coming days.
