NEW YORK, New York - U.S. stocks were weaker Friday as investors and traders continued to fret over U.S. President Donald Trump's trade war. A preliminary deal with the United Kingdom was allayed some nervousness, however the main topic on Friday was the upcoming trade summit between China and the U.S, expected to get underway on Saturday.

"Progress this week was encouraging, but we remain in the ebbs and flows of the news cycle, which is causing market reactions. We are likely in a sideways period of volatility until we begin to get tangible outcomes," Mark Hackett, chief market strategist at Nationwide told CNBC Friday.

Wall Street closed Friday with a split performance as the S&P 500 and Dow Jones Industrial Average edged lower, while the Nasdaq Composite held steady. Meanwhile, Canada's S&P/TSX Composite posted solid gains, buoyed by energy and financial stocks.

Key U.S. Indexes Show Divergence

• S&P 500 (^GSPC) dipped 4.03 points, a marginal decline of 0.07 percent, to close at 5,659.91, snapping a three-day winning streak.

• Dow Jones Industrial Average (^DJI) fell 119.07 points, down 0.29 percent, settling at 41,249.38, weighed down by losses in industrial and consumer stocks.

• Nasdaq Composite (^IXIC) eked out a near-flat finish, adding just 0.78 points (effectively 0.00 percent) to 17,928.92, as megacap tech stocks stabilized.

Market Drivers

Investors weighed mixed signals from Federal Reserve officials, with some policymakers hinting at patience on rate cuts despite cooling inflation. The Dow's underperformance reflected rotation out of cyclical sectors, while the Nasdaq's resilience suggested continued appetite for growth stocks.

Looking Ahead

Next week, traders will scrutinize the outcome of the weekend's China-U.S. trade talks, U.S. retail sales data and earnings reports from major retailers for clues on consumer health. 

U.S. Dollar Mixed as Euro and Pound Gain, Yen Weakens in Friday's Forex Trading

The foreign exchange market saw mixed movements on Friday, with the euro and British pound strengthening against the U.S. dollar, while the Japanese yen extended its losses amid shifting central bank expectations.

Key Currency Movements

• EUR/USD (Euro / US dollar) rose to 1.1251, gaining 0.24 percent as European economic data supported the single currency.

• GBP/USD (British pound / US dollar) climbed 0.48 percent to 1.3305, its highest level in three weeks, boosted by strong UK retail sales figures.

• USD/JPY (US dollar / Japanese yen) edged up to 145.35, with the yen weakening 0.37 percent as traders bet on prolonged Bank of Japan dovishness.

• USD/CAD (US dollar / Canadian dollar) advanced 0.11 percent to 1.3936 despite firmer oil prices, as the greenback held steady.

• USD/CHF (US dollar / Swiss franc) dipped slightly by 0.05 percent to 0.8312, with the Swiss franc holding firm.

• AUD/USD (Australian dollar / US dollar) gained 0.14 percent to 0.6408, supported by risk-on sentiment.

• NZD/USD (New Zealand dollar / US dollar) inched up 0.12 percent to 0.5911, tracking broader commodity currency strength.

Global Markets Wrap Up Friday with Mixed Gains and Losses

Global stock indices closed Friday's trading session with mixed performances, as major European and Asia-Pacific markets mostly edged higher, while some key Asian benchmarks faced declines.

Canadian Market Outperforms

North of the U.S. border, the S&P/TSX Composite (^GSPTSE) climbed 103.68 points, a gain of 0.41 percent, to 25,357.74, marking its highest close in over a month. The rally was led by strong performances in the energy sector amid rising oil prices and robust bank earnings.

UK European Indices Show Broad Gains

The FTSE 100 (^FTSE) in London rose 23.19 points, or 0.27 percent, to close at 8,554.80, supported by gains in financial and energy stocks.

Germany's DAX (^GDAXI) climbed 146.63 points, or 0.63 percent, settling at 23,499.32, while France's CAC 40 (^FCHI) advanced 49.31 points, or 0.64 percent, to 7,743.75.

The broader EURO STOXX 50 (^STOXX50E) gained 20.80 points, up 0.39 percent, closing at 5,309.74, and the Euronext 100 (^N100) increased 8.49 points, or 0.55 percent, to 1,556.81.

Belgium's BEL 20 (^BFX) also finished higher, adding 15.20 points, a 0.35 percent rise, to 4,374.22.

Asia-Pacific and Southeast Asian Markets Mixed

In Asia and the Pacific, Hong Kong's Hang Seng Index (^HSI) gained 91.82 points, or 0.40 percent, closing at 22,867.74, while Singapore's STI (^STI) jumped 27.94 points, or 0.73 percent, to 3,876.16.

Australia's S&P/ASX 200 (^AXJO) rose 39.50 points, or 0.48 percent, to 8,231.20, and the All Ordinaries (^AORD) climbed 40.90 points, or 0.49 percent, to 8,462.60.

New Zealand's S&P/NZX 50 (^NZ50) outperformed with a 138.04-point surge, up 1.11 percent, ending at 12,605.07.

However, India's S&P BSE SENSEX (^BSESN) tumbled 880.34 points, down 1.10 percent, to 79,454.47, marking one of the region's steepest declines.

South Korea's KOSPI (^KS11) dipped slightly, losing 2.21 points, or 0.09 percent, to 2,577.27, while Taiwan's TWII (^TWII) soared 371.64 points, or 1.81 percent, to 20,915.04.

Japan's Nikkei 225 (^N225) surged 574.70 points, or 1.5 percent, closing at 37,503.33, boosted by strong corporate earnings.

Meanwhile, China's SSE Composite (000001.SS) slipped 10.00 points, or 0.30 percent, to 3,342.00, as investor sentiment remained cautious.

Middle East

Middle East markets were mostly closed on Friday and will re-open on Sunday.

Africa

In South Africa the Top 40 USD Net TRI Index (^JN0U.JO) gained 33.38 points, or 0.68 percent, ending at 4,968.88.

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