$BTC people, great news! The China-US negotiations have succeeded!
China will reduce tariffs on American goods from 125% to 10%, and the United States will also reduce tariffs on Chinese goods from 145% to 30%. Moreover, these new tariffs will be implemented for 90 days! This trade war is finally coming to an end!
As soon as this news came out, US stocks surged tonight! Think about it, when the tariffs were high before, many businesses struggled, costs for companies were high, and profits were low. Now that tariffs have been reduced, company costs will decrease, and there will be greater profit margins. 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 cleared their positions early because the market was poor. Now, even if the market improves, those positions cannot be recovered, which is truly unfortunate.
Next, the market is likely to start speculating about interest rate cuts. With tariffs lowered and the economic environment improving, everyone will expect interest rates to drop as well. This would make loans cheaper for businesses and provide more motivation for consumers, representing another potential benefit for the stock market. Let's wait and see how the market develops further; hopefully, it will get better and better!