Dear family members, great news! The China-US negotiations have been successful!

China is reducing tariffs on US goods from 125% to 10%, and the US is also cutting tariffs on Chinese goods from 145% to 30%. Moreover, these new tariffs will be implemented for 90 days! The trade war is finally coming to an end!

As soon as this news broke, US stocks surged tonight! Just think about it, when tariffs were high before, many businesses struggled, costs were high, and profits were low. Now that tariffs have been lowered, business costs have decreased, and profit margins have widened. How could US stocks not rise?

However, there are also some regrettable aspects. Tariffs can be canceled, and the market can recover, but many people sold their stocks or liquidated their positions early due to the poor market conditions. Now, even though the market is good, those positions cannot be regained, which is really unfortunate.

Next, the market is likely to start speculating about interest rate cuts. With tariffs lowered and the economic environment improving, everyone will be hoping that interest rates can also decrease, making loans cheaper for businesses and boosting consumer spending, which would be another potential benefit for the stock market. Let’s wait and see how the market develops next; hopefully, it will get better and better.