#NewsTrade are ready for a significant rebound today, Monday, May 12, 2025, driven by optimism surrounding the latest trade negotiations between the U.S. and China. Futures indicate a strong opening:
• S&P 500: Futures up 1.15%, suggesting a possible opening above the 5,700 mark.
• Dow Jones Industrial Average: Futures up 401 points (0.97%).
• Nasdaq Composite: Futures up 1.45%.
These gains are supported by reports of "substantial progress" in the trade talks between the U.S. and China taking place in Switzerland. President Trump described the negotiations as a "total reset," with both parties committing to continue discussions and establish a trade consultation mechanism. While immediate tariff reductions have not been confirmed, the positive tone has lifted investor sentiment.
Additionally, global geopolitical developments are contributing to market optimism. Notably, a ceasefire agreement between India and Pakistan, along with reports of upcoming peace talks between Russia and Ukraine, are providing additional support to the markets.
Investors are also keeping an eye on the release of key economic data this week, including the Consumer Price Index (CPI), Producer Price Index (PPI), retail sales figures, and consumer sentiment reports. Speeches from Federal Reserve officials, including Chairman Powell, are anticipated to provide further insight into economic prospects.
While today’s rebound is promising, it is important to note that the S&P 500 has faced resistance around the 5,700 level in recent sessions. Sustained movement above this threshold will likely depend on the outcomes of the trade talks and upcoming economic indicators.