Traders work on the floor of the New York Stock Exchange on Feb. 13, 2025.
Danielle DeVries | CNBC
Stock futures hovered near the flatline on Thursday, with investors hoping that the U.S.- United Kingdom trade deal framework is the beginning of more progress to come.
Futures tied to the Dow Jones Industrial Average fell 28 points, or 0.07%. Nasdaq 100 futures slipped 0.03%, while S&P 500 futures were little 0.04% lower.
President Donald Trump on Thursday announced a preliminary trade agreement with the U.K., which is the first deal between the U.S. and a global trading partner since Trump’s “reciprocal” tariff announcement last month. The details have yet to be finalized, but Trump said a 10% baseline tariff will remain in place on the U.K.
“While trade with the UK pales in comparison to trade with our neighbors to the North and South, and especially in comparison to China, it is an important test case and a model for what could be accomplished,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
“If the administration can follow this up with additional agreements, it would go a long way toward healing a stock market that has been battered and bruised this year,” he added.
Trump also noted that the 10% rate represents the lower end of what other countries can expect, and noted “some will be much higher because they have massive trade surpluses.”
Stocks rose to their session highs after Trump said he anticipates U.S. negotiators will have a “good weekend” with China in opening trade talks. The major averages ended the day off the highs, with Dow advancing 0.6% and the S&P 500 adding nearly 0.6%. The Nasdaq Composite climbed about 1.1%.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer are slated to meet with their Chinese counterparts in Switzerland over the weekend. Trump has left his 145% tariff on China unchanged despite issuing a 90-day pause on higher rates for most countries last month.
Week to date, the S&P 500 is on pace for a 0.4% decline for the period, while the Nasdaq is on track to drop 0.3%. The Dow is toting a modest gain of 0.1%, heading for its third positive week in a row.