U.S. stock futures struggled for direction Friday, as major indexes headed for their worst weekly return so far this year after the Trump administration made good on a threat to raise import taxes on $200 billion in Chinese goods.
How are benchmark indexes faring?
Reversing earlier losses, Dow Jones Industrial Average futures YMM9, -0.11% rose 17 points to 25,833, while S&P 500 futures ESM9, -0.21% dropped 0.4 point to 2,872. Nasdaq-100 NQM9, -0.09% rose 3.25 point to 7,599.
On Thursday, the Dow Jones Industrial Average DJIA, -0.54% fell 138.97 points, or 0.5%, to end at 25,828.36 after falling by as much as 450 points earlier. The S&P 500 index SPX, -0.30% dropped 0.3% to 2,870.72 and the Nasdaq Composite Index COMP, -0.41% lost 0.4%, to 7,910.59.
For the week as of Thursday, the Dow and S&P 500 are set for losses of around 2.6% and the Nasdaq is down 3.1%. Those losses would mark the worst weekly return since the market selloff in December.
What’s driving the market?
Trade tensions that have been dogging the market all week were front and center on Friday as President Donald Trump’s increased tariffs on $200 billion in Chinese imports kicked in as of 12:01 Eastern time Friday. Beijing has vowed to retaliate, though no specific details of such tariff hikes have been made public yet.
The tariffs came as negotiators for the two sides resumed talks Thursday in Washington, but little progress was reported, with discussions were set to resume Friday. The higher tariffs come as Trump has voiced frustration over the pace of talks in recent days and has accused the Chinese of reneging on commitments made in previous rounds of negotiation.
U.S. stocks pared losses in Thursday’s session