#TradeWarEases US-China agreement galvanizes markets:
- Dow Jones jumps 480 points, S&P 500 rises 1.28%, Nasdaq rises 1.57%.
- Gold falls more than 1% to $3,283/oz.
- Optimistic statements from the White House and US Treasury Secretary Scott Bessent regarding the agreement, but there are no details on the fate of the tariffs.
- Inflationary concerns:
- The US 10-year Treasury yield rises to 4.411% (+0.83%), reflecting expectations of higher inflation.
- Warnings:
- Even with the imposition of 10% tariffs on China, inflationary pressures may remain high, complicating the Federal Reserve's efforts to lower rates.
- Market analysis:
- The agreement is considered a "positive step above expectations" (Wedbush), but the details announced later will determine the long-term direction.