The S&P 500 Sidelines After A $6 Trillion Run On Trade Risk – US Market Wrap

Wall Street ended the week on a cautious note, with stocks and bonds fluctuating as the world’s two largest economies prepare to begin trade negotiations.

Investors refrained from making riskier bets on speculation that, while talks between Chinese and American officials could serve as a diplomatic icebreaker, they are unlikely to result in a comprehensive agreement at this time. Following a $6 trillion surge in the S&P 500 from the brink of a bear market, action has become more muted in recent days. The gauge closed with little change on Friday.

Traders around the world have been looking for any signs of a truce in the tariff war, which has roiled markets and raised fears of a global economic downturn. President Donald Trump proposed an 80% tariff on China ahead of negotiations scheduled to begin Saturday, urging the country to do more to open its markets to US goods.

According to people familiar with the matter, Trump’s team has identified approximately 20 partners to focus on in early negotiations. The group includes countries like Japan, South Korea, and Vietnam, which are all major sources of US imports and where Trump wants to reduce the trade deficit.

The S&P 500 and Nasdaq 100 were largely unchanged. The Dow Jones Industrial Average fell 0.3%. Across the Atlantic, Germany’s DAX Index became the first major European benchmark to surpass its March high, recouping all losses caused by Trump’s trade war.
The 10-year Treasury yield remained relatively stable at 4.38%. The dollar fell 0.2% while posting its best week since March.