U.S. stock futures point to a higher open on news China and the U.S. will begin trade talks later this week in Switzerland.
The Treasury and U.S. Trade Representative’s office said Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer would travel together to Geneva on May 8 to meet with China’s top economic official. Discussions will center around de-escalation, an initial step seen towards trade talks.
The meeting is the first one confirmed between the countries since President Donald Trump announced tariffs as high as 145% on China that were met with retaliatory rates of 125% from Beijing. Escalating rhetoric between the two countries have roiled markets and added much uncertainty to the economy. So, opening talks will likely be a relief to investors.
The U.S. pair will also meet with Swiss President Karin Ketter-Sutter to discuss negotiations over reciprocal trade.
At 6:40 a.m. ET, futures linked to the blue-chip Dow rose 0.60%, while broad S&P 500 futures added 0.53% and Nasdaq futures gained 0.51%.
Investors also look forward to the outcome of the Fed’s policy meeting at 2 p.m. ET.
No rate move is expected, but people will be keen to hear what Fed Chair Jerome Powell thinks of the economy, inflation, jobs and tariffs. Most economists expect him to say the Fed will keep rates steady until it can get a clearer picture of where tariff rates might settle and for how long.
A wait-and-see approach may spur criticism from Trump, who’s been calling for the Fed to lower rates immediately.
““The Federal Reserve appears dead set to keep policy unchanged on Wednesday, with chair Powell set to defy pressure from the White House and signal that the FOMC (Federal Open Market Committee) is in no rush to lower rates again,” said Matthew Ryan, Head of Market Strategy at global financial services firm Ebury. “President Trump’s tariffs have added considerable uncertainty to the path ahead for U.S. rates. While the growth outlook has undoubtedly worsened, the resilience of the labour market and the significant inflationary pressures brought about by the tariffs suggests that the Fed will adopt a more balanced approach to policy.”
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.