JPMorgan and Goldman Sachs raise their growth forecasts for the U.S. and China following the trade agreement, reducing the risk of a financial recession.

JPMorgan has raised its forecast for U.S. economic growth in 2025 from 0.2% to 0.6%. JPMorgan's chief economist, Michael Feroli, stated that the risk of recession still exists but has decreased to below 50%. The core PCE inflation forecast (excluding food and energy) has also been adjusted from 4% to 3.5%.

At the same time, Goldman Sachs, ING, and several other major banks have also raised their growth forecasts for China, with Goldman increasing from 4% to 4.6%, and ING raising from 4.5% to 4.7%, thanks to momentum from easing trade tensions.