Stock futures slide as China dashes hopes of trade negotiations
Mixed Signals on Tariff Negotiations Slow Stock Market Momentum
After a two-day relief rally in the stock market, momentum slowed considerably on Thursday as mixed signals about tariff negotiations tempered investor optimism. Before trading began, both the Dow Jones Industrial Average futures and S&P 500 futures were down, signaling a weaker start on Wall Street. The tech-heavy Nasdaq Composite futures, however, were up.
Adam Crisafulli, head of Vital Knowledge, reported, “Stocks are sliding this morning after China threw cold water on hopes of a trade détente with the U.S. while investors shrugged at reports of some auto tariff exemptions in the U.S.”
This shift in market sentiment is a departure from the previous two days, when markets rallied on news of a potential U.S. trade deal with China. U.S. Treasury Secretary Scott Bessent expressed optimism about the possibility of a significant trade agreement during a keynote address at the Institute of International Finance in Washington, D.C.
The Wall Street Journal reported that the White House was considering easing tariffs on China, which currently stand at 145%. President Trump hinted at ongoing trade talks with China, but Chinese officials denied any progress in negotiations.
Market gains from the previous day were erased as Asian and European markets showed weakness. Neil Shearing, group chief economist at Capital Economics, noted that optimism about tariff reductions had fueled recent market rebounds, but the latest news failed to drive further gains.
The market volatility followed President Trump’s conflicting statements about Federal Reserve Chairman Jerome Powell. On Tuesday, Trump stated that he had “no intention” of firing Powell, easing concerns among investors.
The Associated Press contributed to this report.
