U.S. stock futures rose Friday on hopes of a lessening of tensions between China and the U.S. over trade, even as disappointing guidance from  Apple and Amazon weighed.

At 05:40 ET (09:40 GMT), Dow Jones Futures climbed 170 points, or 0.4%, S&P 500 Futures rose 22 points, or 0.4%, and Nasdaq 100 Futures gained 45 points, or 0.2%.

The main Wall Street averages started the new month on a positive note on Thursday, boosted by strong numbers from tech giants Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT).

All three indices are on pace for their second winning week in a row. The S&P 500 is on pace to rise 1.4% this week, the Dow Jones Industrial Average is up 1.6% and the NASDAQ Composite is 1.9% higher.

China signals potential U.S. trade talks

China’s commerce ministry on Friday said that Beijing was evaluating the possibility of trade talks with the U.S., adding that any dialogue must be based on sincerity and the removal of unilateral tariffs.

The comments came in response to recent U.S. statements suggesting a willingness to engage in trade negotiations. China’s commerce ministry noted that Washington has sent signals through various channels seeking to start talks.

Global markets have been roiled this month by fears that a broader trade war could push the global economy into a recession. 

Payrolls release looms large

The week’s deluge of economic data culminates Friday with the release of the Labor Department’s closely watched employment report.

Nonfarm payrolls likely increased by 138,000 jobs last month after rising by 228,000 in March, while the unemployment rate is forecast to have been unchanged at 4.2% last month. 

Average hourly earnings are forecast to have risen by 0.3%, matching March’s gain, resulting in an annual increase to 3.9% from 3.8%. 

While the labor market continues to show resilience amid a reluctance by employers to let go of workers after struggling to find labor during and after the COVID-19 pandemic, warning signs are accumulating.

The payrolls reading will be the most recent reflection of heightened economic uncertainty in the U.S., following on from gross domestic product data that showed the U.S. economy unexpectedly contracted in the first quarter.

Apple flags tariff hit, Amazon’s forecast disappoints

Shares of iPhone-maker Apple (NASDAQ:AAPL) fell premarket after the company said it sees about $900 million in costs for the upcoming quarter due to tariffs.

Apple posted fiscal second-quarter results that topped Wall Street estimates on better-than-expected iPhone sales, but tariff concerns dented optimism.

Meanwhile, Amazon (NASDAQ:AMZN) stock also slipped lower after the e-commerce giant reported softer guidance for the current quarter and underwhelming growth in its key cloud computing segment.  

Nearly two-thirds of the S&P 500 constituents have now announced their results, with 76% posting earnings that have surpassed estimates, according to data from FactSet.

Crude heads for hefty weekly loss

Oil prices retreated Friday, continuing to weaken even amid hopes of a scaling back in the bitter trade war between China and the U.S., the two largest economies in the world.

At 05:40 ET, Brent futures ropped 0.6% to $61.77 a barrel, and U.S. West Texas Intermediate crude futures fell 0.6% to $58.86 a barrel.

Both benchmarks are still set to post weekly losses of over 6% amid concerns that the broader trade war could push the global economy into a recession and crimp oil demand, just as the OPEC+ group is preparing to raise output.