Global markets on a hot plate
#TariffsPause #TariffsPause
⚡ Global Markets on a Hot Plate! ⚡
Media outlets reported unconfirmed news about China's intention to lift tariffs on American goods, especially tech chips related to artificial intelligence.
(AI Chips - The Heart of the Next Revolution)
Despite Beijing denying direct negotiations, the US side insists that channels of dialogue remain open.
(Hope exists! - Negotiating under the table)
Market reactions immediately:
Gold has sharply declined to $3,320 per ounce.
✨ (Indicator of Improved Risk Appetite)
Global stocks have rebounded led by technology and industrial sectors.
📈 (Return of optimism for investors)
The US dollar has surged after a long decline, marking a clear recovery.
💵 (Increasing demand for the dollar as a relatively safe haven)
Monetary Side: Important Warnings:
Federal Reserve officials warn: Continued uncertainty may lead to a slowdown in investment and rising unemployment.
⚠️ (Potential Economic Danger)
Some voices call for caution and reliance on real numbers before making decisive decisions.
📊 (Data First!)
Why is the topic so sensitive?
Tariffs have been a source of income for the government, but they may raise inflation rates in a way that harms the economy in the long term.
💣 (Short-term gain that may turn into a delayed bomb)
Important Additional Facts (Added by me):
Smart chip exports account for more than 15% of China's total tech exports.
Any deal between Washington and Beijing will directly impact major companies like NVIDIA, Intel, and AMD.
Markets currently bet 65% that US interest rates will be cut in the last quarter of 2025 if inflation slows further.