Wall Street Pauses Ahead of Key US-China Trade Talks

U.S. stock futures were little changed on Friday as investors held their breath ahead of this weekend’s critical trade talks between the United States and China in Geneva. The calm followed a volatile stretch for markets, with traders digesting potential signs that President Trump’s trade war strategy may be shifting toward diplomacy.

• Dow Jones Industrial Average futures dipped about 0.2%
• S&P 500 futures hovered near flatline
• Nasdaq 100 futures nudged up 0.1%, buoyed by optimism in the tech sector

The restrained moves reflect a wait-and-see approach from Wall Street, as market players assess the tone and possible outcomes of the U.S.-China negotiations set to begin this weekend. Investor sentiment was lifted on Thursday after President Trump unveiled a new U.S.-U.K. trade agreement, and speculation swirled around potential progress in de-escalating tensions with China.

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According to a Bloomberg report, the Trump administration is considering lowering tariffs on Chinese imports from 145% to below 60%—a move officials hope China might reciprocate. Although no final decisions have been made, the idea of easing tariffs is seen as a confidence booster for global markets, especially after years of mounting trade tensions.

President Trump has maintained a bullish stance on the upcoming talks, labeling them “substantive” and hinting at real progress. Speaking to reporters this week, he suggested that tariff reductions are on the horizon, stating: “It’s coming down,” referring to the steep tariffs imposed on Chinese goods.

He also encouraged investors to take action: “You better go out and buy stock now,” Trump said, hinting at broader pro-growth policies, including a new tax bill making its way through Congress.

Thursday’s rally—driven in part by trade optimism and the U.S.-U.K. deal—showed how sensitive markets remain to geopolitical developments. While hopes are high for progress in Geneva, investors are keenly aware that tariff negotiations are complex, and talks may be more exploratory than solution-driven.