U.S. stock futures dipped modestly Friday after Wall Street’s major indices posted fresh record closes in the previous session. Investors are now anticipating a phone call between President Donald Trump and Chinese leader Xi Jinping, with a potential deal regarding TikTok’s U.S. operations likely to be on the agenda. Meanwhile, FedEx posted quarterly results that exceeded analyst expectations, while Lennar shares fell amid a sharp decline in three-month earnings.
Futures Show Minor Retreat
By 02:55 ET, Dow futures had eased by 40 points, or 0.1%, S&P 500 futures slipped 4 points, and Nasdaq 100 futures remained largely flat. Thursday saw the Dow Jones Industrial Average, the S&P 500, and the tech-heavy Nasdaq Composite all close at new all-time highs, fueled by investor reactions to this week’s Federal Reserve interest rate cut.
“[B]ulls [are] celebrating the fact that both fiscal and monetary policy are now in stimulus mode while the AI mania continues,” analysts at Vital Knowledge said in a note.
In individual stocks, Intel (NASDAQ:INTC) surged over 22% after AI-focused Nvidia (NASDAQ:NVDA) revealed a $5 billion investment in the U.S. semiconductor company. Post-issuance, Nvidia will become one of Intel’s largest shareholders.
Trump-Xi Phone Call in Focus
Traders are monitoring an anticipated call Friday morning between President Trump and Xi Jinping, with a possible agreement to keep TikTok operating in the U.S. expected to dominate the discussion.
U.S. officials told Reuters the TikTok deal is at the top of the agenda during the first known call between the two leaders in three months. It could also pave the way for a potential in-person summit in South Korea later this year, following months of tense trade negotiations since Trump returned to office in January.
For TikTok, owned by China’s ByteDance, an agreement on the future of its U.S. arm would resolve ongoing uncertainty for the popular platform. Despite Congress ordering TikTok to divest or cease U.S. operations, Trump has repeatedly extended the deadline, citing the need to find a willing buyer. He also noted that the app “helped get me elected” in 2024.
On Monday, U.S. and Chinese officials unveiled a framework deal, with the Wall Street Journal reporting that TikTok’s U.S. operations would be managed by a consortium including Oracle, Silver Lake, and Andreessen Horowitz. Key details, however, remain unclear regarding the ownership structure and China’s continued influence over the app.
FedEx Exceeds Quarterly Expectations
FedEx (NYSE:FDX) shares jumped in after-hours trading following quarterly revenue and profit results that beat forecasts. The Memphis-based shipping firm benefited from cost-cutting measures that offset weaker international volumes after the end of a tariff exemption on certain low-value consumer shipments.
As part of efforts to reduce expenses by $1 billion this fiscal year, FedEx has closed facilities, restructured divisions, and grounded aircraft. These steps, coupled with indications of resilient consumer demand amid tariff-driven price concerns, boosted the company’s closely watched operating margin.
Executives noted that ending the “de minimis” exemption reduced first-quarter revenue by $150 million, yet top-line revenue of $22.24 billion still exceeded estimates of $21.66 billion. Adjusted profit of $912 million also surpassed expectations.
Lennar Earnings Slide
Shares of Lennar (NYSE:LEN) fell slightly in after-hours trading after reporting a 46% drop in fiscal third-quarter profit. U.S. housing demand has been pressured by inflation concerns, and it remains uncertain whether the Fed’s restart of policy easing will reduce short-term mortgage costs.
Lennar has offered incentives such as cost adjustments and mortgage rate buydowns to stimulate home demand, but these measures have weighed on profit margins. Fourth-quarter home deliveries are projected between 22,000 and 23,000 units, below the 25,000 estimated, according to LSEG data cited by Reuters.
Bank of Japan Maintains Rates
The Bank of Japan left interest rates unchanged at 0.5% Friday, as expected, amid political uncertainty and concerns over U.S. trade tariffs. The BOJ also outlined plans to start selling portions of its vast holdings of equities, ETFs, and REITs, following last year’s historic halt to asset purchases, a move that triggered a sell-off in Japanese stocks.
The decision received 7-2 support from the BOJ rate-setting board, with two members—Takata Hajime and Tamura Naoki—calling for a 25-basis point hike despite steady inflation. The BOJ last raised rates in January.
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