Five Key Things to Know Before the U.S. Stock Market Opens on May 9, 2025: U.S.-U.K. Trade Agreement, Corporate Earnings Reports, and Other Key Factors
On May 9, 2025, U.S. stock market investors are focused on the U.S.-UK trade agreement, U.S.-China trade negotiations, corporate earnings, and economic data. U.S. stock futures rose following the U.S.-UK trade agreement; U.S.-China trade negotiations will be held in Geneva, with tariff policies being the focal point; Pinterest's earnings report was strong, while Expedia's stock price dropped due to weak travel demand; U.S. retail sales rose by 1.5% in April, and the Producer Price Index (PPI) fell by 0.4%; Bitcoin broke through the $100,000 mark, and the escalating military conflict between India and Pakistan has heightened concerns over geopolitical risks.
Key Updates
05/09 13:30
Five Key Things to Know Before the U.S. Stock Market Opens on May 9, 2025: U.S.-U.K. Trade Agreement, Corporate Earnings Reports, and Other Key Factors
On May 9, 2025, U.S. stock market investors are focused on the U.S.-UK trade agreement, U.S.-China trade negotiations, corporate earnings, and economic data. U.S. stock futures rose following the U.S.-UK trade agreement; U.S.-China trade negotiations will be held in Geneva, with tariff policies being the focal point; Pinterest's earnings report was strong, while Expedia's stock price dropped due to weak travel demand; U.S. retail sales rose by 1.5% in April, and the Producer Price Index (PPI) fell by 0.4%; Bitcoin broke through the $100,000 mark, and the escalating military conflict between India and Pakistan has heightened concerns over geopolitical risks.
1. U.S. Stock Futures Rise, Continuing Optimism from UK-US Trade Agreement
U.S. stock futures rose in early trading on Friday, continuing the previous session's gains, which were triggered by news of a UK-US trade agreement. Nasdaq 100 futures increased by 0.3%, following a 1.1% rise in the index on Thursday. S&P 500 and Dow Jones Industrial Average futures also edged up, continuing Thursday's 0.6% increase.
This rally was boosted by President Trump's announcement of a preliminary trade agreement with the UK. According to a summary released by the White House, UK cars will receive partial tariff reductions, while U.S. manufacturers are expected to gain "priority access" in the UK aerospace industry. Although the details of the agreement are not fully finalized, the market has reacted positively.
Meanwhile, oil and gold prices also rose, while the 10-year U.S. Treasury yield remained relatively unchanged, indicating a slight increase in market risk appetite.
2. US-China Trade Talks to Take Place This Weekend, Tariff Policy in Focus
Market attention is shifting to the upcoming US-China trade talks set to take place this weekend in Geneva, Switzerland. On Friday, President Trump stated on Truth Social that he is considering reducing tariffs on Chinese imports from the current 145% to 80%, adding that "many trade agreements are underway, all of which are good (even great) deals."
The talks are set against a backdrop of a 21% drop in China's exports to the US in April, indicating that high tariff policies have put pressure on both economies. Although China's overall exports grew by 8.1% year-on-year, the sharp decline in exports to the US highlights the impact of bilateral trade tensions.
Additionally, the Trump administration's tariff policy on China remains within a 90-day grace period, and the market is closely watching for any further policy adjustments.
3. Corporate Earnings: Pinterest Shines, Expedia Warns of Weak Travel Demand
Several major companies released earnings reports before Friday's market opening, eliciting mixed reactions. Social media platform Pinterest (PINS) saw its stock surge in pre-market trading as its quarterly revenue and monthly active users exceeded market expectations, showing resilience in advertising spending despite economic uncertainty.
Conversely, online travel platform Expedia (EXPE) issued a pessimistic outlook due to weak US travel demand, causing its stock to plunge in pre-market trading. Buy Now, Pay Later company Affirm Holdings (AFRM) also saw its stock decline due to disappointing quarterly forecasts.
Additionally, companies reporting earnings today include AMC Networks (AMCX), Alpha Metallurgical Resources (AMR), and Algonquin Power & Utilities (AQN), with investors continuing to focus on corporate outlooks for future quarters.
4. US Economic Data: Retail Sales and Producer Price Index Both Released
On Friday, the US Department of Labor reported a 1.5% month-over-month increase in April retail sales, far exceeding the market expectation of -0.1%, indicating strong consumer spending momentum. Core retail sales, excluding gasoline and automobiles, also increased by 0.9%.
On the other hand, the April Producer Price Index (PPI) fell by 0.4% month-over-month, below the expected 0.2% increase, indicating some easing of upstream inflationary pressures. Core PPI (excluding food, energy, and trade) decreased by 0.1% month-over-month.
These data will be key for the Federal Reserve's monetary policy evaluation, especially as several Fed officials, including Chairman Jerome Powell, New York Fed President John Williams, and Chicago Fed President Austan Goolsbee, are scheduled to speak today.
5. Bitcoin Surpasses $100,000, Chinese Exports and Geopolitical Risks in Focus
Driven by trade talks and market optimism, Bitcoin prices exceeded $100,000 in early Friday trading, reaching as high as $104,000. This is the first time Bitcoin has returned to six-figure levels since early 2025, indicating continued demand for safe-haven assets.
Meanwhile, China's April export data showed that despite a significant decline in exports to the US, growth in exports to Southeast Asian countries offset some of the losses. Analysts suggest this may be related to some companies rerouting through third countries to circumvent US tariffs.
Additionally, geopolitical risks are escalating. Military conflict between India and Pakistan has intensified, with both sides accusing each other of launching drone and missile attacks. This situation could challenge market stability in South Asia.
