U.S. stock futures moved slightly higher Friday, positioning Wall Street for a positive week driven by solid corporate earnings and optimism surrounding trade agreements ahead of the Trump administration’s August tariff deadline. Oil prices also rose, while Intel’s weak outlook and cost-cutting plans weighed on its shares.
Trade Deals in the Spotlight
Trade talks continue to dominate market attention following the U.S. signing new deals with Japan, Indonesia, and the Philippines, adding to existing agreements with the U.K. and China.
On Thursday, a spokesperson for the European Commission indicated that a trade deal between the European Union and the U.S. is “within reach,” ahead of President Donald Trump’s threatened imposition of a 30% tariff on EU imports set for August 1.
Reuters, citing diplomats, reported that this agreement would likely impose a 15% tariff on most EU goods entering the U.S.
Further trade discussions with China are scheduled for next week, with the Wall Street Journal reporting that President Trump is pushing for greater concessions from Beijing.
Earlier this year, the two countries had agreed to significantly reduce their tariffs and signed a trade framework, but the U.S. still maintains tariffs ranging from 30% to 50% on Chinese products. Both sides are now aiming to finalize a more comprehensive deal.
Solid Earnings Support U.S. Stocks
U.S. futures gained modestly on Friday as investors digested strong earnings results.
At 03:10 ET, S&P 500 futures were up 45 points (0.1%), Nasdaq 100 futures increased by 10 points (0.1%), and Dow futures rose 20 points (0.1%).
All major indexes are set to close the week higher, with the Dow and NASDAQ each targeting nearly 1% weekly gains, and the S&P 500 advancing about 1.1%.
Of the 155 S&P 500 companies that have reported so far, approximately 83% surpassed Wall Street’s expectations, propelling the S&P and NASDAQ to new intraday and closing highs Thursday.
The recent wave of trade agreements has buoyed investor sentiment, who now await any further announcements ahead of the August 1 tariff deadline.
More earnings reports are due Friday from companies like HCA Holdings (NYSE:HCA) and Charter Communications (NASDAQ:CHTR), while durable goods orders for June will provide additional economic insight ahead of next week’s Fed meeting.
Trump and Powell Spar Over Fed Renovation Costs
Tensions flared again Thursday between President Trump and Federal Reserve Chair Jerome Powell, centering on the escalating cost of the Fed’s Washington building renovations.
Trump, during a visit to the Fed’s headquarters, highlighted that the renovation budget had increased from $2.7 billion to around $3.1 billion, a figure Powell disputed.
Nonetheless, Trump appears to have softened his stance on firing Powell.
“To do so is a big move and I just don’t think it’s necessary,” Trump told reporters after the visit.
However, Trump reiterated his desire for lower interest rates during the brief press conference. The Fed has paused rate cuts amid uncertainty about how Trump’s trade policies may impact inflation.
Intel Shares Drop Amid Cost Cuts and Weak Outlook
Intel’s (NASDAQ:INTC) stock fell sharply premarket following a disappointing third-quarter forecast and plans to reduce its workforce by 22% by the end of 2025, down to 75,000 employees, through attrition and “other means.”
The chipmaker also announced it would halt projects in Germany and Poland and slow construction on its Ohio chip plant to better align spending with demand.
Investors reacted cautiously, concerned Intel appears to be focusing more on cost reduction than regaining a technological edge in a highly competitive market.
Oil Rises on Trade Deal Optimism
Oil prices climbed Friday, building on gains from the previous day, buoyed by optimism over trade deals.
By 03:10 ET, Brent futures were up 0.9% at $69.78 per barrel, while WTI crude rose 0.9% to $66.61 per barrel.
Both benchmarks jumped over 1% Thursday after U.S. crude inventories fell sharply.
The prospect of easing trade tensions, with new agreements announced between the U.S. and Japan and possible progress with the European Union, is supporting oil demand expectations.
Reduced trade frictions boost economic growth and cross-border commerce, which in turn raise demand for energy through increased transport and industrial activity.
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