(Reuters) -U.S. stock index futures rose on Friday as hopes of a de-escalation in a punishing U.S.-China trade war offset disappointing earnings updates from Apple and Amazon.
Global stocks rose as Beijing said on Friday it was “evaluating” an offer from Washington to hold talks over U.S. President Donald Trump’s 145% tariffs on China.
Their back-and-forth over tariffs has kept investors on edge, with both sides unwilling to be seen backing down in a trade war that has roiled global markets and upended supply chains.
Still, Trump’s reversal of some tariffs on global trade partners has helped U.S. stock indexes recover sharply from recent losses. The tech-heavy Nasdaq closed on Thursday at levels last seen before April 2, dubbed “Liberation Day”, when Trump unveiled massive global tariffs.
Despite signs of reprieve on the trade front, the rapid shifts in U.S. tariff policies have forced some companies to warn of business impacts or pull earnings forecasts amid worries of higher costs and a hit to economic growth.
Apple slid 2.9% in premarket trading after the iPhone maker trimmed its share buyback program by $10 billion and CEO Tim Cook told analysts that tariffs could add about $900 million in costs this quarter.
Amazon.com was down 1.6% after the company forecast second-quarter operating income below estimates as concerns about tariffs and its impact on consumer spending clouded the outlook.
At 06:09 a.m. ET, Dow E-minis rose 224 points, or 0.55%. Nasdaq 100 E-minis climbed 63.25 points, or 0.32%, and S&P 500 E-minis were up 26.75 points, or 0.48%.
Investors also await the Labor Department’s closely watched employment report at 8:30 a.m. ET (1230 GMT) for clues on the health of the U.S. labor market.
The report is expected to show nonfarm payrolls increased by 130,000 jobs last month after rising by 228,000 in March. Part of the anticipated step-down in payrolls would be due to the fading boost from warmer weather.
Average hourly earnings are forecast to have risen by 0.3%, matching March’s gain.
Among other stocks, Block slumped 21.3% after cutting its profit forecast for 2025 and missing estimates for quarterly earnings, as the payments firm grapples with muted consumer spending.
Airbnb dipped 4.5% after the vacation rental platform forecast second-quarter revenue largely below Wall Street estimates and signaled softening demand in the U.S.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Devika Syamnath)
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