U.S. stock markets traded lower on Friday, even as optimism continued to build around the potential easing of trade tensions between the United States and China. The Dow Jones Industrial Average dropped 0.4% or 166 points, while the S&P 500 fell by 0.26% and the Nasdaq Composite shed 0.4%. Despite the Friday dip, stocks had closed higher for a third consecutive session on Thursday, April 24, driven by encouraging signs of diplomatic engagement between Washington and Beijing.
Emerging reports indicate that U.S. and Chinese officials are actively negotiating to resolve trade disputes, helping lift sentiment across global markets. Stocks that showed notable movements during the day included Meta Platforms, Alphabet, and T-Mobile.
Meanwhile, Bitcoin (BTC) extended its recent gains, rising 1.7% over the past 24 hours to trade at $94,460. Analysts caution that Bitcoin may be nearing a range top, but investors are closely watching its price action as broader market sentiment improves.
Part of the positive momentum is attributed to reports that Beijing is considering a rollback of levies on semiconductor products, a move seen as a significant step toward de-escalating trade tensions. Additionally, Federal Reserve officials have hinted at possible interest rate cuts in the coming months, further boosting market confidence.
Global Markets React Positively
In response to the trade optimism and a supportive tone from President Donald Trump, major Asian and European indices posted gains.
- Japan’s Nikkei 225 climbed nearly 2%, while the Topix index rose 1.4%.
- South Korea’s Kospi advanced 0.95%, and Hong Kong’s Hang Seng Index added 0.24%.
- In Europe, the pan-European Stoxx 600 edged up 0.38%, Germany’s DAX gained 0.5%, and the FTSE 100 in the U.K. ended the day slightly higher after a volatile session.
Broader Trade Developments
Beyond China, the U.S. is also setting its sights on expanding trade relationships elsewhere. Reports suggest that the Trump administration is exploring a potential trade deal with India, targeting key sectors such as e-commerce, agriculture, and data storage. This would represent a significant pivot toward strengthening ties with another major Asian economy.
Additionally, Treasury Secretary Scott Bessent signaled optimism over a potential U.S.–South Korea trade deal, stating that an agreement could be finalized as early as next week.
Outlook
While markets faced a modest pullback on Friday, the broader tone remains upbeat as investors digest positive trade news and favorable central bank signals. Continued progress on trade negotiations with China, India, and South Korea, coupled with the possibility of interest rate cuts, could set the stage for a stronger market rally in the weeks ahead.
