US markets are poised to open higher Friday, extending a recent rebound fueled by strong corporate earnings and positive signals from international trade talks. The S&P 500 index futures pointed to gains around 0.6% before the market open.
The expected move suggests the benchmark index will build on a gain nearing 4% for the week, recovering from a recent downturn. The broader US Stock Market DOW is anticipated to follow a similar upward trend as investor sentiment improves.
Driving market optimism is Alphabet, Google's parent company, which reported earnings exceeding expectations. The results boosted the company's shares in after-hours trading and reassured some investors regarding the performance of tech firms investing heavily in artificial intelligence.
Positive developments emerged from trade discussions. Following talks in Washington, South Korea and the United States agreed to work toward a deal aimed at removing new US tariffs before a pause lifts in July South Korea US aim package deal before tariff pause ends July Seoul says 2025-04-24.
Reports also indicate China is considering exempting some US imports from its tariffs China considers exempting some goods US tariffs source says 2025-04-25, asking businesses to identify eligible goods. These actions follow recent efforts to de-escalate trade tensions.
Adding to the positive sentiment, recent economic data has not shown signs of recession, with Thursday's initial jobless claims report coming in favorably.
Republican lawmakers in Congress are planning to introduce a defense package proposal valued at $150 billion, including a $27 billion allocation for President Trump's Golden Dome missile defense shield US Congress Republicans seek 27 billion Golden Dome Trump tax bill 2025-04-24.
Bank of Japan Governor Kazuo Ueda stated the central bank would continue rate increases if inflation moves toward its target, but noted they would scrutinize the impact of US tariffs on this outlook.
The dollar has also stopped depreciating and shows slight gains against major currencies this week, though volatility remains.
"My view is that the damage to U.S. exceptionalism will be longer lasting, but that it’s understandable that there'll be a relief recovery after the U.S. has has come back from the brink policy wise," said Jim Reid, global head of macro research at Deutsche Bank.
