Nasdaq Futures Jump 2% After US-China Trade Talks

Nasdaq futures rose nearly 2% following US-China trade talks in Geneva that were described as “constructive,” though no tariff specifics were disclosed. S&P 500 futures gained 1.4% and European stock futures rose around 0.8%, while the dollar firmed modestly and Treasury yields climbed as traders lowered expectations for US rate cuts. The market is also watching geopolitical developments including a fragile India-Pakistan ceasefire and a potential meeting between Zelenskiy and Putin in Turkey later this week.

Equities

The FTSE 100 rose 0.3% on Friday, supported by strength in energy and mining shares and investor attention on upcoming US-China trade talks. The index had recently marked its longest ever winning streak but still ended the week slightly lower overall. The FTSE 250 added 0.2%, recording its fifth straight weekly gain.

BP shares climbed 4.7%, the biggest gain in the FTSE 100, after reports of takeover interest from rival firms surfaced. The energy sector rose nearly 2% as oil prices strengthened ahead of the trade discussions. Precious metal miners also advanced, with the sub-index rising 2.1% as gold prices rose more than 1%.

British Airways owner IAG gained 2.4% after reporting stronger-than-expected first-quarter profits and keeping its full-year outlook unchanged. Building materials supplier Travis Perkins led the FTSE 250 with a 6.9% jump after naming Gavin Slark as its new CEO.

In the United States, the S&P 500 slipped 0.07% on Friday to 5,659.91, the Dow Jones fell 0.29% to 41,249.38, and the Nasdaq was flat, rising just 0.78 points to close at 17,928.92. For the week, the S&P 500 dropped 0.47%, the Nasdaq declined 0.27%, and the Dow edged down 0.16%.

Among US companies, Expedia fell 7.3% after missing quarterly revenue forecasts, which the firm linked to weaker-than-expected domestic travel demand. Despite the broader market holding near recent highs, many companies have reduced or withdrawn forward guidance, citing continued uncertainty around trade policy. About 76% of S&P 500 firms that reported earnings by Friday morning had beaten analyst estimates.

Forex & Commodities

The US dollar strengthened against safe-haven currencies after US-China trade talks in Geneva ended on a constructive note. The greenback rose 0.4% to 145.93 yen and gained 0.5% against the Swiss franc to trade at 0.8337 francs. The dollar index hovered near a one-month high, though it remains 3.6% below its early April level following the announcement of sweeping US tariffs. Sterling slipped 0.3% to $1.3288, while the euro was down 0.2% at $1.1228. China’s offshore yuan gained 0.2% to 7.224 per dollar after both sides signalled progress in reducing the US trade deficit, with a joint statement expected.

Commodity currencies saw modest gains, with the Australian and New Zealand dollars each rising 0.3% to $0.6432 and $0.5927, respectively. These moves came as risk appetite improved after US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer confirmed the US had reached a deal with China.

Gold fell as safe-haven demand eased. Spot gold was down 1.4% at $3,277.84 an ounce, and US gold futures dropped nearly 2% to $3,279.20. An analyst at Reliance Securities warned the metal could fall further to $3,200 in the short term, citing rising dollar strength and easing geopolitical tensions. Silver edged up 0.7% to $32.94, platinum rose 0.5% to $999.64, and palladium increased 0.5% to $980.69.

Brent crude rose 0.67% to $64.34 a barrel, and US WTI crude gained 0.79% to $61.50, extending last week’s 4% advance. Gains were limited by plans from OPEC+ to increase output in the coming months.

Markets are now looking to US inflation figures out Tuesday and retail sales on Thursday for signals on the Federal Reserve’s next move. Cleveland Fed President Beth Hammack said Friday the Fed would wait for clearer data before adjusting interest rates.