Nasdaq futures rise nearly 4%

Nasdaq futures rise nearly 4%

Nasdaq futures surged nearly 4% on Friday morning, driven by optimism surrounding the U.S.-U.K. trade deal and potential progress in U.S.-China trade talks. The market's positive sentiment was further boosted by President Donald Trump's announcement of a trade agreement with the U.K. [1].

The Nasdaq-100 Index futures (NDX) and the Dow Jones Industrial Average (DJIA) futures both experienced significant gains, with the Nasdaq futures rising by approximately 2.3% [2]. This surge came despite Federal Reserve Chair Jerome Powell's warning of a potential economic slowdown due to tariffs [1].

The positive market sentiment was also influenced by the recent jobs data, which showed a decrease in weekly unemployment claims to 228,000, slightly below analysts' estimates [1]. Additionally, the tech sector, particularly megacap stocks, benefited from the reversal of AI chip controls by the Trump administration [1].

The U.S. Treasury Secretary, Scott Bessent, is set to meet with his Chinese counterpart in Switzerland this week to discuss trade and economic issues, further fueling investor optimism [2]. Despite the uncertainty surrounding the U.S.-China trade deal, the market's focus on the progress made during the recent Geneva meeting has been a significant driver of the rally [2].

European markets also experienced a positive opening, with the FTSE 100, French CAC 40, and German DAX all rising due to a trade deal with the U.K. and an interest rate cut from the Bank of England [1]. The Asian markets, including Japan's Nikkei and South Korea's Kospi, also saw modest gains, reflecting the global sentiment [1].

In summary, the Nasdaq futures' nearly 4% rise can be attributed to the positive developments in U.S.-U.K. trade deal and the potential progress in U.S.-China trade talks. Investors remain optimistic about the market's outlook despite the ongoing uncertainties.

References:
[1] https://www.schaeffersresearch.com/content/ezines/2025/05/08/dow-nasdaq-futures-higher-amid-uk-trade-deal-buzz
[2] https://www.tradingview.com/news/tradingview:2dbd76e41094b:0-ixic-nasdaq-futures-rally-2-as-traders-await-updates-on-productive-us-china-trade-talks/