U.S. equity futures inched up early Friday, capping off a positive week fueled by upbeat corporate earnings and growing confidence around international trade deals ahead of a looming tariff deadline from the Trump administration. Oil prices continued their rally, while Intel came under pressure following disappointing guidance and a sweeping cost-cutting strategy.
Trade Talks Drive Optimism
Trade developments remained front and center after the U.S. secured fresh agreements this week with Japan, Indonesia, and the Philippines—adding momentum to recent deals with the U.K. and China.
In a key update from Europe, a European Commission spokesperson said Thursday that a trade accord between the EU and U.S. is “within reach,” ahead of President Donald Trump’s August 1 deadline, when he’s expected to impose a sweeping 30% tariff on European imports unless a deal is struck.
According to Reuters, citing two diplomats familiar with the discussions, the potential compromise would involve a general 15% tariff on EU goods entering the U.S.
Meanwhile, Washington is preparing for a new round of trade negotiations with Beijing. On Friday, the Wall Street Journal reported that President Trump is pushing for additional economic concessions from China.
The two countries had agreed earlier this year to scale back tariffs and signed a broad framework deal. However, despite that progress, U.S. tariffs on Chinese imports still range from 30% to 50%, and both sides are now pushing for a more comprehensive agreement.
U.S. Stocks on Track for Weekly Gains
The resilience of U.S. equities has been bolstered by a steady flow of strong corporate results. As of 03:10 ET, S&P 500 futures rose by 45 points (0.1%), Nasdaq 100 futures gained 10 points (0.1%), and Dow futures were up by 20 points (0.1%).
All three major indices are positioned to end the week higher. The Dow Jones Industrial Average and NASDAQ Composite are each eyeing nearly 1% weekly gains, while the S&P 500 is up roughly 1.1%.
So far, 83% of the 155 S&P 500 companies that have reported earnings have topped Wall Street expectations—helping lift both the S&P and NASDAQ to new intraday and closing highs on Thursday.
Ongoing trade developments have further supported investor confidence, with market participants now watching for any last-minute progress before the administration’s tariff deadline.
More corporate earnings are expected Friday from names like HCA Holdings (NYSE:HCA) and Charter Communications (NASDAQ:CHTR). Meanwhile, June’s durable goods orders are also on the docket ahead of next week’s Federal Reserve policy meeting.
Trump and Powell Spar Over Fed Renovation Budget
Tensions between President Trump and Federal Reserve Chair Jerome Powell resurfaced Thursday—this time over the central bank’s building renovations.
During a visit to Washington, Trump criticized the cost of the refurbishment, noting that the budget had ballooned from $2.7 billion to roughly $3.1 billion—an estimate Powell challenged.
Still, Trump appears to be backing off his previous threats to dismiss Powell.
“To do so is a big move and I just don’t think it’s necessary,” Trump told reporters after his stop at the Fed headquarters.
Even so, he reiterated his demand for lower interest rates during the brief press conference, continuing to pressure Powell. The Federal Reserve has held back from cutting rates recently due to uncertainty surrounding the inflationary impact of Trump’s trade policies.
Intel Hit by Forecast Cut and Job Reductions
Intel (NASDAQ:INTC) shares slid in premarket trading after the chipmaker issued weaker-than-expected third-quarter guidance and laid out plans to cut costs, including a significant reduction in headcount.
The company announced it will lower its workforce to 75,000 by year-end—a 22% drop from 2024 levels—through attrition and “other means.”
Additionally, Intel said it is scrapping planned investments in Germany and Poland and will slow construction at its Ohio chip facility “to ensure spending is aligned with market demand.”
Investor sentiment soured as some viewed the aggressive cost-cutting as a signal the firm is prioritizing savings over reclaiming technological leadership in a competitive chip sector.
Crude Prices Rise on Trade Hopes
Oil prices climbed further on Friday, building on the prior day’s gains as traders bet that easing trade tensions will boost demand.
By 03:10 ET, Brent crude futures were up 0.9% at $69.78 per barrel, while West Texas Intermediate (WTI) rose 0.9% to $66.61 per barrel.
Both benchmarks gained more than 1% on Thursday, helped by data showing a sharp drawdown in U.S. crude inventories.
Trade optimism remains a key driver. The U.S. and Japan announced a new trade agreement earlier this week, and momentum appears to be growing for a similar deal with the European Union.
The easing of trade frictions tends to support global economic activity, which increases energy consumption through higher transport volumes and industrial demand.
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