Wall Street Traded Slightly Lower by Midday Friday

Investors adopted a wait-and-see stance ahead of a potential trade breakthrough

Wall Street traded slightly lower by midday Friday, as investors adopted a wait-and-see stance ahead of a potential trade breakthrough, with high-stakes negotiations between U.S. officials—led by Treasury Secretary Scott Bessent—and Chinese authorities set to unfold over the weekend.

President Donald Trump signaled that tariffs on Chinese goods could be slashed from the current 145% to 80%, though that figure remains significantly higher than pre-Liberation Day levels, prompting continued caution among market participants.

Equities gave back a portion of Thursday's gains as sentiment turned more defensive, while gold rebounded 1% to $3,330 per ounce, partially offsetting losses from the previous session.

Oil prices extended their rally, climbing further above $60 a barrel amid an improved global demand outlook, putting crude on track for its strongest weekly performance since late 2024. Natural gas followed suit, with Henry Hub futures rising 4.4%.

In fixed income, Treasury yields held steady, with the 10-year yield hovering around 4.37%.

The upbeat macroeconomic mood was underpinned by Friday's report showing that the U.S. economy grew at an annualized rate of 2.4% in the third quarter, exceeding expectations for 2.1% growth and marking a slight acceleration from the second quarter's 2.3% expansion.

However, the report also showed that the personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, rose 0.1% month-over-month in September after a flat reading in August. Economists polled by Dow Jones had anticipated a 0.2% increase.

The report also showed that the core PCE price index, which excludes volatile food and energy components, fell 0.1% from August, surprising economists who had projected a 0.1% rise.

On the earnings front, several major companies, including CVS Health (NYSE:CVS) and Union Pacific (NYSE:UNP), reported their latest financial results.

CVS exceeded earnings expectations but missed revenue estimates as earnings were impacted by hurricane-related costs. Union Pacific fell short of both earnings and revenue expectations.

Among other notable earnings reports, Peloton (NASDAQ:PTON) posted a smaller-than-expected loss in the third quarter and revenue also topped estimates as the company’s performance improved despite a difficult year for the fitness company.

Friday’s Performance In Major US Indices, ETFsAccording to Benzinga Pro data:

Major U.S. Indices

Index

Last

Change

% Change

Dow Jones Industrial Average

99,648

-71

-0.07%

NASDAQ Composite

17,433

-23

-0.13%

S&P 500

4,386

-10

-0.23%

ETFs

ETF

Last

Change

% Change

Invesco QQQ Trust

441.6

-0.63%

SPDR Dow Jones Industrial Average ETF Trust

342.1

-0.15%

Vanguard Total Stock Market ETF

423.6

-0.14%

Friday’s Stock MoversStocks reacting to earnings reports included: CVS Health (NYSE:CVS) shares decreased despite the company exceeding earnings expectations but missing revenue estimates. Earnings were impacted by hurricane-related costs, leading to a net loss of $0.41 per share, deeper than the expected profit of $0.04 per share. CVS also missed revenue expectations, reporting $84 billion compared to the estimated $86.5 billion.Union Pacific (NYSE:UNP) reported earnings that missed expectations by $0.07, with earnings per share arriving at $2.40 versus the anticipated $2.47. Revenue also fell short of estimates, posting $7 billion compared to the expected $7.03 billion. As a result, shares of the railroad giant declined in premarket trading on Friday.Peloton (NASDAQ:PTON) posted a smaller-than-expected loss in the third quarter and revenue also topped estimates as the company’s performance improved despite a difficult year for the fitness company. Peloton reported a loss of $0.12 per share, narrower than the expected loss of $0.20 per share, and revenue arrived at $1.07 billion, exceeding the anticipated $980,000.