01:36 PM EDT, 05/09/2025 (MT Newswires) -- US equity indexes fell in midday trading Friday ahead of trade talks in Switzerland this weekend between the United States and China.

The Nasdaq Composite fell 0.1% to 17,908.1, the S&P 500 declined 0.1% to 5,657.3, and the Dow Jones Industrial Average dropped 0.3% to 41,244.4. Industrials and communication services led the decliners intraday, while consumer discretionary was the top gainer.

Treasury Secretary Scott Bessent will meet China's Vice Premier He Lifeng in Geneva. The US imposed 145% tariffs on Chinese goods, and China retaliated with 125% tariffs against the US. President Donald Trump said in a social media post Friday that China should open its market to US goods, while an "80% Tariff on China seems right! Up to Scott B".

"The US administration is reportedly leaning toward cutting its absurdly high tariffs on China in an attempt to coax China back to the negotiating table," Derek Holt, head of capital market economics at Scotiabank, said in a note. "The rumored tariff cut remains well into territory that crushes commerce by making it unprofitable to supply the market. All of this is setting the stage for talks in Geneva."

The Scotiabank note said China's trade figures for April are starting to show signs of weakening. Exports were up 8.1% year-over-year versus 12.4% in the month prior. "The country-level details show large declines in trade with the US that were partially offset by gains in trade elsewhere such as Europe, elsewhere in Asia, and Canada, thereby raising dumping concerns in those markets," Holt said in the note. According to data compiled by Trading Economics, market expectations were for exports to grow 1.9% last month.

"If China's economy can sustain growth in the face of the US import tariffs, China's bargaining power in any negotiations with the US would be enhanced," Thierry Wizman, a global foreign-exchange and rates strategist at Macquarie, said in a note earlier in the week. "Regardless, we're still doubtful that direct US-China negotiations will lead to a 'grand compromise'."

Most US Treasury yields fell intraday, with the two-year rate down 1.2 basis points to 3.87%.

West Texas Intermediate crude oil futures rose 1.7% to $60.96 a barrel.

In company news, Expedia Group ( EXPE ) reported late Thursday Q1 revenue that missed the average analyst estimate compiled by FactSet. Shares of Expedia ( EXPE ) slumped 7.7% intraday, among the steepest decliners on the S&P 500.

The Trade Desk ( TTD ) reported overnight Q1 sales surged 25% year-over-year to $616 million, beating the $575.3 million consensus of analysts polled by FactSet. Its shares rallied 18% intraday, the top gainer on the Nasdaq.

Microchip Technology ( MCHP ) reported fiscal Q4 non-GAAP earnings and sales late Thursday above consensus expectations, and its Q1 outlook on adjusted earnings and sales was also above the average analyst forecast. Shares rose 11% intraday, the second-biggest gainer on the S&P 500.

Gold futures increased 1.1% to $3,343.81 per ounce.