Breaking: Strong Rise.. After the U.S. Treasury Secretary announced U.S.-China talks🔥🔥🔥
The offices of U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamison Greer (TADAWUL:4190) announced Tuesday that officials will meet with their Chinese counterparts in Switzerland this week to discuss economic and trade matters. These meetings appear to be a major step toward Washington and Beijing starting negotiations aimed at resolving the ongoing trade war sparked by President Donald Trump.
Trump raised tariffs on Chinese imports to 145% last month even as he reduced so-called reciprocal tariffs on most other U.S. trading partners. China, one of the United States' largest trading partners, retaliated with steep tariffs on American goods. Stock futures, which opened lower Tuesday evening, turned sharply higher immediately after news of the meetings.
Economic and trade talks between Washington and Beijing spark market optimism
Bessent and Greer are scheduled to meet with Swiss President Karin Keller-Sutter during their visit, their offices said. The Treasury Department explained that "Treasury Secretary Bessent will also meet with the Principal Representative for Economic Affairs from the People's Republic of China while in Switzerland." The Chinese Foreign Ministry announced later Tuesday that Vice Premier He Lifeng, Beijing's top official for China-U.S. economic and trade affairs, will meet with Bessent in Switzerland, NBC News reported.
Bessent confirmed in a statement: "Economic security is national security, and President Donald J. Trump is leading the way at home and abroad for a stronger and more prosperous America." He added: "I look forward to productive discussions as we work to rebalance the international economic order to better serve U.S. interests." Greer's office noted that he will also "meet with his counterpart from the People's Republic of China to discuss trade issues" while in Geneva. He explained: "At President Trump's direction, I am negotiating with countries to rebalance our trade relationships to achieve reciprocity, open new markets, and protect America's economic and national security. I look forward to having productive meetings with some of my counterparts as well as visiting my team in Geneva who are working hard to advance U.S. interests on a range of multilateral issues."
Trump had stated earlier on Tuesday that China wanted to meet, and that the United States would do so "at the appropriate time." During a White House meeting with Canadian Prime Minister Mark Carney, he added, "They want to negotiate, they want to meet, and we'll meet with them at the appropriate time." Trump also expressed frustration with people "asking, 'How many deals are you going to sign this week?'" Even though his administration has made clear that other countries are requesting bilateral trade talks with the United States, Trump complained at the White House: "Everybody's saying, 'When, when, when are you going to sign deals?' We don't have to sign deals, they have to sign deals with us. They want a share of our market. We don't want a share of their market." Bessent also noted earlier on Tuesday that the United States is negotiating with 17 trading partners, not China, explaining, "China, we haven't engaged in negotiations with them yet."
Fed Rate Decision Awaited Amid Cautious Optimism
Stock futures rose Tuesday evening as investors monitored the latest developments regarding U.S. trade negotiations and looked forward to the Federal Reserve's interest rate announcement expected Wednesday afternoon. Dow Jones Industrial Average futures rose by 280 points, or 0.7%. S&P 500 futures jumped by 0.8%, while Nasdaq 100 futures rose by 1%.
Stock futures rose after government spokespeople said that U.S. Treasury Secretary Scott Bessent and Chief Trade Officer Jamison Greer would meet with their Chinese counterparts this week in Switzerland. This could be seen as a positive sign for trade negotiations after turbulent market movements following President Donald Trump's tariff announcement last month. The move comes as investors prepare for the Federal Reserve's interest rate decision, scheduled for 2 p.m. ET. Fed funds futures are pricing in a nearly 97% probability that the central bank will keep its borrowing rate steady, according to CME's FedWatch tool.
Traders will closely monitor Federal Reserve Chairman Jerome Powell's press conference following the decision for insights on the path of interest rates and the state of the economy. This comes at a critical moment for the central bank leader, who has been the target of criticism from Trump, who said that his termination "cannot come soon enough." White House economic advisor Kevin Hassett at one point indicated that the team would "consider" whether Powell could be fired, though Trump later said he had "no intention" of removing the Fed chairman.
The Fed meeting also comes as market participants grapple with concerns that Trump's tariff plan could push inflation higher, complicating the central bank's interest rate plan. Recent turmoil in financial markets and growing fears that the US economy is sliding into recession have heightened investor anxiety.
Thierry Wezeman, global FX and interest rates strategist at Macquarie, said: "If traders want to believe that the Fed will come to save the world tomorrow and calm the recent surge in political uncertainty with a clear signal of ‘monetary easing,’ they need to think again."
Market participants also followed the latest batch of corporate earnings. Shares of Advanced Micro Devices jumped about 5% on the back of a stronger-than-expected earnings report, while shares of Rivian fell about 2% after the electric vehicle manufacturer lowered its 2025 delivery target. Traders will also be watching consumer credit data due Wednesday. Elsewhere, they will analyze expected earnings reports from companies including Disney and Carvana.
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