- Wall Street remains relatively calm ahead of crucial U.S.-China trade talks.
- President Trump hints at potential tariff reductions, stirring market speculation.
- Travel sector faces declining demand, impacting companies like Expedia and Airbnb.
Wall Street is holding steady as investors await the outcome of a pivotal meeting between U.S. and Chinese officials set to take place in Switzerland.
Meanwhile, the travel sector is experiencing mixed results. Lyft surged over 27% after reporting record weekly ridership in March, whereas Expedia saw a 7.4% drop due to weaker-than-expected demand in the U.S. and a substantial decline in bookings from Canada.
Wall Street Braces for Potential Trade War Shift as U.S.-China Talks Begin
Wall Street ended the week with minor fluctuations as investors awaited the high-stakes trade negotiations between the U.S. and China. The S&P 500 edged up 0.2%, while the Dow Jones dipped by 17 points. Despite market jitters, the broader sentiment remained calm, with analysts closely monitoring the potential impact of tariff adjustments on global trade.
President Trump’s suggestion to cut tariffs to 80% from the current 145% stirred initial reactions in the market. While such a move would ease some pressure on importers, the rate would still be considerably high, leaving investors skeptical about its effectiveness in stabilizing trade relations with China. The final decision rests with Treasury Secretary Scott Bessent, who is leading the talks in Switzerland.
Beyond the trade front, earnings reports continued to shape individual stock movements. Lyft’s strong performance in March propelled its stock by 27.3%, while Taiwan Semiconductor Manufacturing (TSMC) reported a 48.1% revenue surge in April, boosting its U.S.-traded shares by 1.2%. However, travel companies like Expedia and Sweetgreen struggled amid declining demand, with the latter facing a nearly 18% drop after missing revenue forecasts.
International markets reflected a similar trend of cautious optimism. While Hong Kong’s Hang Seng rose by 0.4%, Shanghai’s composite fell by 0.3% as China reported an 8.1% rise in exports but a notable 20% decline in shipments to the U.S., highlighting the ongoing impact of steep tariffs.
As Wall Street eyes the U.S.-China meeting outcome, investors brace for potential shifts in trade policy that could either stabilize or further unsettle global markets.
“Trade wars are good, and easy to win.” — Donald Trump, 2018
