US stock index futures muted after rally; China talks awaited

U.S. stock index futures were subdued on Friday after a rally in the previous session, when a new trade agreement between the United States and Britain had fueled expectations of more such deals to ease the sting of the global trade war.
Investors are also awaiting meetings between U.S. and China representatives over the weekend in Switzerland.
Wall Street closed higher on Thursday after Britain and the U.S. struck the deal - the first of its kind since President Donald Trump paused his initial tariffs last month.
Under the new agreement, Britain will lower its tariffs on U.S. goods and provide greater import access, while the U.S.-imposed 10% baselines tariffs will remain in place.
However, the limited nature of the agreement brought up questions about its actual impact and potential to be used as a template for deals with other countries.
"Yesterday's price action suggests that investors are eager for good news and react positively — even if the news isn't that great... it's all in how it's delivered," said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Meanwhile, Reuters reported India had offered to slash its tariff gap with the U.S. to less than 4% from nearly 13% now, in exchange for an exemption from Trump's tariffs, according to sources.
The Switzerland meetings between U.S. and China representatives will also grab focus, after Trump said he expected substantial negotiations and that China tariffs would come down from 145%.
"In the best-case scenario, talks go well, both countries commit to finding a reasonable deal, markets rally on Monday. Or… the talks break down, Trump says something he shouldn't, and we wake up to another hectic week," said Ozkardeskaya.
A tit-for-tat tariff policy between the world's two biggest economies has raised concerns over the hit to global economic growth, leaving markets, companies and the U.S. Federal Reserve in wait-and-watch mode.
Chair Jerome Powell said on Wednesday the economy was in good shape, but acknowledged the heightened risks of inflation and unemployment and that it was unclear what the appropriate monetary policy response was at the moment.
At 05:36 a.m. ET, Dow E-minis were down 48 points, or 0.12%, S&P 500 E-minis were up 3.5 points, or 0.06%, and Nasdaq 100 E-minis were up 36.25 points, or 0.18%.
The S&P 500 and the Nasdaq are set for marginal declines this week.
In a light day for earnings, Trade Desk shares jumped 14% in premarket trading after the ad firm posted first-quarter revenue and profit above Wall Street estimates.
Pinterest climbed 13.4%, a day after it forecast current-quarter revenue above estimates.
Expedia slipped 9.4% after the online travel platform missed quarterly revenue estimates.
A host of Fed officials including presidents John Williams, Austan Goolsbee and Thomas Barkin are scheduled to speak through the day, in the first appearances after the latest Fed decision.
(Reporting by Purvi Agarwal in Bengaluru; Editing by Devika Syamnath)

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