US benchmark stock indices closed the previous regular session with gains. The S&P 500 rose by 0.43%, the Nasdaq 100 added 0.27%, and the industrial Dow Jones climbed 0.70%.

Futures extend gains on Trump's trade deal remarks

During Asian trading hours, equity futures continued to rise after President Donald Trump announced plans to introduce a major trade agreement. This announcement boosted optimism that the US is making headway in negotiations. Coming amid growing concerns over a global economic slowdown, Trump's statement was seen as a breath of fresh air.

While details of the proposed deal remain unclear, early assessments suggest it could cover a broad range of sectors, including agriculture, manufacturing, and services. According to experts, the success of the talks will largely depend on both sides' willingness to compromise and consider each other's interests. Key issues still to be resolved include intellectual property protection and the removal of trade barriers and non-tariff restrictions. Nevertheless, analysts urge caution, noting that Trump has made several similar announcements in the past—none of which have yet led to a finalized deal.

European markets gain amid UK deal expectations

European indices also moved higher. The US administration is expected to announce a trade agreement with the United Kingdom in the coming days. This development initially strengthened the British pound, though gains were later capped due to expectations of a Bank of England rate cut. Meanwhile, US Treasury yields fell, and gold rose by 0.4%.

The fine print of any deal will be crucial, as it may serve as a template for negotiations with other nations. However, some analysts warn that the US-UK agreement may not provide a clear picture of how broader trade talks will unfold. In fact, the drawn-out nature of such negotiations could frustrate markets hoping for a swift improvement in US trade conditions.

Market volatility subsides, but focus shifts to China talks

Market turbulence has eased significantly since early April, thanks in part to Trump's trade concessions and several reassuring US economic reports that have bolstered bullish sentiment. However, attention is now turning to this weekend's negotiations with China in Switzerland. This follows Trump's imposition of tariffs exceeding 100% on Chinese imports, to which China responded in kind. The president has previously stated that he does not intend to reduce tariffs on China upfront, preferring to maintain leverage for more substantive trade talks with Beijing.

Cautious sentiment persists post-Fed meeting

Following Wednesday's Fed meeting, traders remain cautious. Fed Chair Jerome Powell sought to calm fears about the US economy but also warned that the risks of rising unemployment and accelerating inflation have increased. The Fed held rates steady. The key question for central banks now is how long the good news can last, given the unpredictable nature of Trump's trade policies.

S&P 500 technical outlook

From a technical viewpoint, bulls have a clear goal: to break through the nearest resistance at $5,677. A successful move above this level would signal further growth and open the path toward $5,692. Maintaining control over $5,715 is also a top priority, as it would further solidify buyers' positions. On the downside, if risk appetite wanes, buyers must defend the $5,653 area. A break below that level could quickly push the index back to $5,630, with potential for further decline to $5,608.