US equities were mixed on Friday, capping a strong week driven by signs of easing trade tensions between the US and China and encouraging inflation data. The S&P 500 rose 0.1%, putting the index in positive territory for the year. The Nasdaq Composite gained 0.2%, while the Dow Jones Industrial Average slipped 74 points, or 0.2%. Friday’s session could see elevated market swings due to a record volume of options contracts set to expire. According to Goldman Sachs, more than $2.8 trillion in notional options exposure will roll off, marking the largest May expiration on record. Markets stabilize after tariff truce Investor sentiment improved earlier this week after officials from the US and China agreed to a 90-day pause on additional tariffs. The temporary truce alleviated concerns about further escalation in the trade dispute, which had been weighing on global growth expectations. Markets have rallied since the announcement, with all three major indexes logging notable weekly gains. The S&P 500 is up 4.5% so far this week, while the Nasdaq has advanced more than 6%. The Dow has added 2.6% over the same period. On Thursday, both the S&P 500 and the Dow closed higher, although the Nasdaq dipped slightly. Markets also found support in softer inflation figures. The producer price index for April showed a 0.5% monthly decline, signaling relief on the wholesale cost front. This followed the release of April’s consumer price index earlier in the week, which rose 2.3% year-over-year—its slowest annual pace since February 2021. While the data helped cool inflation concerns, some companies have started signaling the impact of tariffs. Walmart said Thursday it expects to raise prices on select items later this month due to increased import costs. Trump Hints at new trade action President Donald Trump said Friday that the administration will begin issuing letters to multiple countries outlining new tariff rates. He indicated these letters would serve in place of direct negotiations with nations that may not be prioritized for face-to-face meetings. “We’ll be telling people what they’ll be paying to do business in the United States,” Trump said. “I guess you could say they could appeal it, but for the most part, I think we’re going to be very fair.” Consumer sentiment drops US consumer confidence declined in early May amid growing concerns that tariffs could drive inflation higher, according to preliminary data from the University of Michigan’s consumer sentiment survey released Friday. The index of consumer sentiment fell to 50.8 from 52.2 in April, reflecting rising anxiety about the economic impact of the trade standoff. Short-term inflation expectations jumped sharply, with the year-ahead outlook rising to 7.3% from 6.5% last month. Long-term inflation expectations also edged higher, climbing to 4.6% from 4.4%. However, it’s worth noting that the majority of responses were collected before the US and China announced a 90-day pause on most tariffs earlier this week. The temporary truce may ease some inflation concerns, but its impact on consumer sentiment will likely become clearer in subsequent surveys. The post US stocks open mixed: Nasdaq and S&P flat, Dow slips slightly appeared first on Invezz
