BlockBeats news, on May 12, with the important consensus reached in high-level China-U.S. economic and trade talks triggering a new round of rebounds, the current trading situation in the U.S. stock market seems as if Trump’s 'Liberation Day' shock never occurred. Futures indicate that the S&P 500 index (SPX) will open nearly 4% higher, which could push the index significantly above the level on April 2. The Nasdaq 100 index (NDX) is expected to re-enter a bull market.
Traders are also cutting their bets on the extent of interest rate cuts by major central banks this year. Swap contracts linked to the Federal Reserve meeting now lean towards a 25 basis point cut in September. Last week, these contracts suggested that the Fed might make policy changes as early as July. However, some investors are concerned about the lack of details in the agreement announced on Monday and the risk of renewed conflict.
Three months is not enough time to negotiate complex trade disputes. Moreover, it is unclear what the goal will be at the end of the grace period. When asked how to avoid a further increase in tariffs after the 90-day grace period ends, Treasury Secretary Scott Bessent stated on Monday that it is possible to extend it further. (Golden Ten)
