Here are today's trade stories ¹:
- *US-China Trade Tensions Ease*: The US and China have agreed to reduce tariffs for 90 days, with US tariffs on Chinese imports dropping to 30% from 145%, and China lowering its import duty on US goods to 10% from 125%. This move has boosted investor confidence, leading to a surge in global stocks and crude oil prices.
- *Market Reaction*: Technology and chip stocks led the rally, with Nvidia jumping 4.3%, Broadcom up 5.9%, and Advanced Micro Devices up 6.4%. Apple rose 6%, and Amazon climbed 8% as tariff relief eased pressure on their Chinese-centric businesses.
- *Fed and Monetary Policy*: The Federal Reserve's stance on interest rates remains cautious, with chances of a June rate cut at 11% and odds of a July cut at 45%. Fed Chairman Jerome Powell is set to speak on Thursday.
- *Earnings Season*: Investors are watching key tech updates, including Cisco and Applied Materials' reports, for insights into the impact of tariffs and AI demand. Retail earnings, including Walmart's report, will also provide insight into how tariffs affect pricing and supply.
- *Market Trends*: The S&P 500 forward price-to-earnings ratio stands at 21.35, above its long-term average near 18. Analysts continue to lower their estimates for 2025 S&P 500 earnings, with the average estimate falling to $265 from $273 over the last three months.
