U.S. stock futures edged up after mixed trading in the prior session, with some worries lingering that further twists in the trade saga lie ahead despite a recent agreement between the U.S. and China. But the deal has led Barclays to ditch its warning of a U.S. recession later this year. Investors are turning their focus to an upcoming consumer sentiment survey that has plunged over the past few months due to tariff-induced concerns.

1. Futures inch up

U.S. stock futures pointed higher on Friday. By 06:39 ET (10:39 GMT), the Dow futures contract had risen by 152 points, or 0.4%, S&P 500 futures had gained 16 points, or 0.3%, and Nasdaq 100 futures had increased by 50 points, or 0.2%.

The main averages on Wall Street logged a mixed session on Thursday, as investors remained wary that a trade truce between the U.S. and China earlier this week may not completely stamp out growth concerns sparked by President Donald Trump’s aggressive tariff agenda.

Walmart (NYSE:WMT) warned that the elevated U.S. levies will force the low-cost retail giant to raise prices in the coming weeks -- an admission that some analysts flagged could soon be echoed by other companies.

Elsewhere, markets were gauging a fresh batch of economic readings which showed unexpected cooling in producer prices and softness in core retail sales.

"April retail sales suggests pre-emptive buying to get ahead of tariff-related price hikes faded quickly after a March spending surge," said James Knightley, Chief International Economist at ING, in a note to clients.

"Meanwhile, [a] subdued [producer price index] indicates that, for now, companies are choosing to absorb higher costs in profit margins. That may not continue for long."

2. Barclays no longer expects U.S. recession

The trade agreement between Washington and Beijing has prompted Barclays to upwardly revise its U.S. growth forecasts and predict that the world’s largest economy will not slip into a recession later this year, the bank said in a note released late Thursday.

It now expects the U.S. economy to grow 0.5% this year and 1.6% next year, up from previous forecasts of -0.3% and 1.5%, respectively.

Reduced uncertainty and an improved economic backdrop also led Barclays to lift its euro area growth expectations. It now forecasts flat economic growth this year, compared to a 0.2% contraction previously.

Barclays still expects a technical eurozone recession in the second half of 2025, but with growth contracting by less than previously forecast.

"Overall, we remain downbeat about the growth outlook in the euro area because uncertainty remains very elevated and the negotiations on reciprocal tariffs between the European Union and the U.S. remain at a technical level and there are no signs of progress," Barclays said in a note.

3. University of Michigan sentiment ahead

The economic calendar is set to be relatively light on Friday, with the focus on a preliminary reading of the University of Michigan’s consumer sentiment survey.

Economists predict that the May reading will edge up slightly, after falling in April.

Against a backdrop of rising tariff worries, the survey has shown a deterioration in household optimism in recent months and increasing expectations for a spike in inflationary pressures.

Still, some debate has swirled around how reflective this so-called "soft data" is of the state of the economy, particularly after the Federal Reserve noted last week signs of broader resilience to possible tariff headwinds.

4. Applied Materials (NASDAQ:AMAT) shares drop

Shares in Applied Materials slipped in extended hours trading after the chipmaking equipment maker posted weaker-than-anticipated sales at its largest segment.

Revenue from its semiconductor systems unit, which accounts for the greatest part of its overall sales, came in at $5.26 billion, compared with estimates of $5.32 billion, according to LSEG data cited by Reuters.

California-based Applied has been grappling with new U.S. restrictions on the export of some chip manufacturing gear to China, its biggest foreign market. Revenue from the country made up around 25% of overall sales in its fiscal second quarter, falling from 43% a year ago.

In the quarter ended on March 31, Applied posted total revenue of $7.10 billion, versus projections of $7.13 billion. Adjusted per-share income was $2.39, with analysts calling for $2.31.

For its third quarter, Applied guided for revenue of $7.20 billion, plus or minus $500 million. CFO Brice Hill noted a "dynamic economic and trade environment", but said the firm has not seen a "significant" change to demand.

5. Gold dips

Gold prices fell and were on pace to register steep weekly losses as the trade de-escalation between the U.S. and China boosted risk appetite and undermined safe-haven demand for gold.

Traders were seen locking in steep profits in bullion, as it declined from recent record highs. The yellow metal was also pressured by strength in the dollar this week, as well as rising U.S. Treasury yields.

Spot gold fell 1% to $3,208.56 an ounce, while gold futures for June fell 0.5% to $3,211.06/oz by 03:35 ET. Spot prices were trading down about 3.2% for the week, their worst drop since early-November 2024.