U.S. stocks had a muted opening Friday morning, as trade war pessimism resumed its hold following a rally the day before. Meanwhile, bulls are betting on Google (GOOGL) parent Alphabet’s blowout earnings and — one more time — hopes that the Fed could cut rates in the coming months.
The Dow Jones Industrial Average was off 45 points shortly after markets opened, or 0.1%. But the S&P 500 rose 0.1% and the Nasdaq edged up 0.2% — a slightly muted response considering Thursday’s tech-fueled rally. The VIX was steady near 26.7, suggesting investors remain on edge, and gold was down 1.2%, cooling off slightly from its recent historic surge.
The U.S.-China trade story took a strange turn, as President Donald Trump repeated that talks are underway — even though Beijing said they’re not. Chinese officials have flatly denied any negotiations are happening, with Foreign Ministry spokesperson Guo Jiakun urging the U.S. not to “mislead the public.”
The whiplash is fueling fresh skepticism over whether real progress is being made or if it’s just another series of vague hints meant to stabilize markets.
Amid the confusion over trade negotiations, Trump was asked in a Time magazine interview published Friday morning about a scenario in which tariffs remain as high as 50% a year from now, and whether he would consider that a victory.
“Total victory,” Trump said.
Google turned in a stunner after the bell Thursday: Revenue jumped 12% to $90.2 billion, net income surged 46% to $34.5 billion, and the company sweetened its dividend by 5% while greenlighting another $70 billion in buybacks. The results crushed expectations and delivered exactly what Wall Street wanted to see — big growth without cost sprawl.
With markets hypersensitive to expense discipline and guidance right now, Alphabet’s show of strength is likely helping steady the mood.
Google stock was up about 2.8% in Friday morning trading.
Against the uncertain trade backdrop, major firms across sectors — from American Airlines (AAL) to Procter & Gamble (PG) — have withdrawn or revised their financial forecasts, citing the unpredictable nature of tariff policy and their impact on consumer demand and supply chains.
The trend reflects a broader unease in the business community, with leaders like Richard Branson, David Solomon of Goldman Sachs (GS), Jamie Dimon of JPMorgan (JPM), and BlackRock’s (BLK) Larry Fink warning of turbulence, disruption, and the possibility that the U.S. is already in a recession.
Companies reporting earnings today include some of the biggest names across healthcare, consumer goods, and energy. Pharmaceutical giant AbbVie (ABBV), hospital operator HCA Healthcare (HCA), and insurance heavyweight Aon (AON) are all on deck.
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