A preliminary U.S.-UK trade deal and India’s offer to narrow tariff gaps also lifted sentiment, but gains were limited.Ignacio Teson•Saturday, May 10
Quick overview
- Wall Street’s main indexes closed mostly unchanged as investors remained cautious ahead of U.S.-China trade negotiations.
- The Dow Jones Industrial Average fell 0.29%, while the S&P 500 and Nasdaq saw minor declines.
- President Trump suggested an 80% tariff on Chinese goods, raising concerns about the potential for a breakthrough in trade talks.
- Despite some positive sentiment from a preliminary U.S.-UK trade deal, overall gains in the market were limited.
Wall Street’s main indexes closed little changed on Friday, reflecting investor caution ahead of key U.S.-China trade negotiations set for the weekend in Switzerland.
The Dow Jones Industrial Average slipped 0.29% to 41,249.38, the S&P 500 edged down 0.07% to 5,659.91, and the Nasdaq Composite held steady at 17,928.92.
SPX
For the week, the Dow lost 0.16%, the S&P 500 fell 0.47%, and the Nasdaq declined 0.27%.
Trump Floats 80% Tariff on China Ahead of Weekend Trade Talks
Ahead of a high-stakes meeting between U.S. and Chinese officials this weekend, President Donald Trump hinted at the possibility of an 80% tariff on Chinese goods in a social media post—cooling some optimism over a breakthrough in the ongoing trade war between the world’s two largest economies.
In the post, Trump stated: “An 80% tariff on China sounds about right! Up to Scott B.”—referring to U.S. Treasury Secretary Scott Bessent.
It remains unclear whether Trump is proposing the 80% tariff as a long-term measure, a temporary reduction from the current 145% rate, or if he is delegating authority to Bessent to negotiate lower tariffs with China.
While an 80% tariff would represent a significant cut from the current level, it would still constitute a substantial barrier to trade.
Investors are watching for progress toward de-escalation in global trade tensions. A preliminary U.S.-UK trade deal and India’s offer to narrow tariff gaps also lifted sentiment, but gains were limited.
Top Gainers:
Regencell (+76%), Lyft (+28.8%), Rumble (+23.1%), Trans Medical (+22.3%), Insulet (+20.7%)
Top Losers:
Onto Innovation (-29.7%), Globus Medical (-24.5%), Compass (-18.2%), Affirm (-15%), Global Star (-12.5%)
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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