Live Updates: Dow Futures Dip as China Reveals Trade Talks Have Yet to Begin

Traders on the New York Stock Exchange faced some setbacks recently. The Dow Jones Industrial Average futures dropped by 184 points, around 0.5%. The sell-off came after China announced there were no ongoing trade negotiations with the U.S. This news put a damper on hopes for easing trade tensions between the two economic giants.

On a brighter note, the market had posted strong gains earlier, with all major indexes rising by over 1% on Wednesday. At one point, the Dow even soared by more than 1,100 points. The optimism was fueled by comments from President Trump, who indicated a willingness to adopt a less confrontational stance in trade discussions. Treasury Secretary Scott Bessent also mentioned the potential for a significant trade deal.

However, the optimism quickly faded when China’s Ministry of Commerce made it clear that no talks were happening. They suggested that any claims of progress should be disregarded and called for the elimination of what they termed "unilateral" tariffs.

Gaurav Mallik, an investment expert at Pallas Capital Advisors, noted that while there is some encouraging talk from the U.S. government, the market is still stuck within a range. He emphasized that investors are looking for a reversal of tariffs or substantial trade agreements before feeling more positive about the market’s future. This cautious outlook comes as the market experiences corrections due to the rapid declines seen recently.

In added complexity, Trump assured that he doesn’t plan to dismiss Federal Reserve Chairman Jerome Powell, whose term extends to May 2026. This statement seems to have boosted market confidence, especially given the uneasy relationship between them.

Looking at the broader picture, all three major stock averages remain on track for weekly gains, with the Nasdaq up 2.6% and the S&P 500 up nearly 1.8%. The Dow is also showing a modest increase of 1.2%.

In company-specific news, IBM faced a sharp decline of more than 7% despite reporting better-than-expected earnings. They maintained their full-year outlook, which disappointed investors. Meanwhile, Southwest Airlines saw a 4% drop after announcing plans to reduce its schedule later this year and withdrawing earnings guidance for 2025 and 2026.

Trade policies and corporate earnings are crucial factors for investors right now. As uncertainties loom regarding U.S.-China relations and company earnings, it’s clear that the market remains sensitive to both international and domestic economic signals.

For real-time financial insights, you can check reports from Reuters.

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