Market Overview
📰 U.S.–China Trade Truce Spurs Market Rally
On May 12, the U.S. and China agreed to a 90-day reduction in tariffs, with the U.S. lowering rates from 145% to 30% and China reducing its tariffs from 125% to 10% . This development led to significant gains in global markets:
Dow Jones Industrial Average surged by 1,092 points (2.6%)
S&P 500 increased by 3%
Nasdaq rose by 4.1%
In Asia, India's Sensex climbed 3.7%, and Pakistan's KSE 100 Index soared 9.4%, buoyed by the trade truce and an IMF aid announcement .
📊 Market Indices Snapshot
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💡 Trading Strategy Insights
📈 GARP Strategy Gains Traction
With reduced policy uncertainty, the Growth at a Reasonable Price (GARP) strategy is regaining popularity. UBS analysts highlight 29 companies with strong operational quality and growth prospects, including Broadcom and On Holdings .
🛍️ Consumer Brands Navigate Tariff Changes
Brands manufacturing in China, such as Réalisation Par and Lingua Franca, are adjusting strategies in response to the temporary tariff relief. Some are halting sales or considering price adjustments to manage potential inventory surpluses before the August 10 deadline .
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🪙 Cryptocurrency Market Movements
Bitcoin reached a peak of $105,747 before settling around $103,800, marking a weekly gain of over 10% . Ethereum also saw significant gains, trading at $2,555 . Strategy, led by Michael Saylor, acquired 13,390 bitcoins for $1.34 billion, bringing its total holdings to 568,840 bitcoins .
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🗓️ Upcoming Economic Events
U.S. CPI Data Release: Scheduled for 8:30 AM ET on May 13. Traders anticipate potential volatility in both stock and crypto markets based on the inflation figures .
