S&P500 Today: Lyft Soars, Pinterest Pops as US Stocks React to Trade Forecast

Stocks Rise as Trade Hopes Lift Sentiment Before China Talks

U.S. stocks opened higher Friday, buoyed by renewed trade optimism after President Donald Trump hinted that several international agreements are in progress and suggested lowering tariffs on Chinese goods ahead of key weekend talks. The Dow Jones Industrial Average rose 87 points, or 0.2%. The S&P 500 added 0.4%, while the Nasdaq Composite gained 0.6%.

Could a U.K. Trade Deal Set the Tone for Broader Agreements?

Traders responded positively after Trump announced a preliminary agreement with the U.K., marking the first new trade deal since his call for “reciprocal” tariffs last month. While the agreement is limited in scale, investors are treating it as a potential model for deals with larger trading partners.

The president also indicated that a 10% tariff on U.K. imports may serve as a global benchmark going forward. Though the U.K. accounts for a relatively small share of U.S. trade, the move signals momentum in the administration’s broader trade push.

What’s the Market Expectation for China Tariffs?

Trump’s post on Truth Social also included a suggestion that an 80% tariff on China “seems right,” which would be a notable reduction from the current 145% rate. While not as low as the sub-60% level that some traders anticipated, the potential cut is being viewed as a sign of de-escalation ahead of Treasury Secretary Scott Bessent’s weekend meeting with Chinese officials in Switzerland. It remains unclear whether this rate would be temporary or part of a longer-term framework, leaving traders looking for clarity from the upcoming talks.

Which Stocks Are Moving on Earnings and Guidance?

Earnings remained a key driver for individual stock moves. Lyft jumped over 20% after boosting its share buyback plan to $750 million, offsetting a revenue miss.

Microchip Technology surged 10% after providing upbeat guidance and beating revenue estimates.

Pinterest gained nearly 14% on a strong revenue forecast, while Insulet rallied 12% following a solid beat and raised outlook.

On the downside, Coinbase fell 2% on weak revenue, Expedia dropped 10% after a miss and soft guidance, and Sweetgreen declined over 5% on lowered full-year expectations.

Market Forecast

Market direction now hinges on the outcome of U.S.-China trade discussions this weekend. A definitive move to lower tariffs could lift sentiment further, while ambiguity or a lack of progress may weigh on stocks early next week. Traders will also monitor any follow-through on the U.K. deal and look for signs of additional agreements that could add support to a market trying to stabilize.

More Information in our Economic Calendar.