TODAYS MARKET NEWS
Asian markets saw a modest boost as news emerged that U.S.-China trade negotiations are finally set to begin. U.S. officials, including Treasury Secretary Scott Bessent, will meet with Chinese Vice Premier He Lifeng in Switzerland from May 9–12. While this has sparked investor optimism, uncertainty remains, as no trade deals have been signed yet.
Market Snapshot:
- China’s SSE Composite: 🔼 +0.8% (YTD +2.46%)
- South Korea’s Kospi: 🔼 +0.55%
- Japan’s Topix: 🔼 +0.3%
- S&P 500: 🔽 -0.8% (YTD -4.7%)
- Stoxx Europe 600: 🔽 -0.4%
Fed Interest Rate Decision Looms
Markets are also holding their breath for today’s Federal Reserve rate decision. While analysts expect no immediate rate cut, traders are watching Chairman Jerome Powell’s remarks for clues about future cuts.
Inflation & Tariffs: The Biggest Risks
Experts warn that U.S. tariffs on China -which could drop from 160% to 60% soon—may still fuel inflation rather than provide economic relief. Goldman Sachs estimates that recession risk remains at 45%, citing ongoing tariff pressures on key industries like pharmaceuticals and semiconductors
Palantir’s Stock Drop
Despite a strong earnings report, Palantir stock dropped 12%, as investors seemingly sold on the news after a pre-earnings buying frenzy.