U.S. market stabilization fails, beware of 12:01 today

Last night, the U.S. stock market dropped slightly; looking at the drop alone does not constitute news, but comparing it to the opening that day, it feels unusual.

- The Dow Jones index fell by 0.74% (opened up by 0.2%), the S&P 500 index fell by 0.37% (opened up by 0.8%), and the Nasdaq index fell by 0.03% (opened up by 1.5%)—in other words, it gave back all the gains during the session.

The reason for the rise in U.S. stocks at the opening is noteworthy—U.S. Treasury Secretary Bessent was interviewed by CNBC before the opening—this statement has two key points: one is 'before the opening' and the other is 'traders are watching CNBC in real-time.' The timing and platform are not coincidental; it is clear these words are meant for the market to stabilize it.

At the time, CNBC put this article on the front page, with the headline (Bessent says 'ready to reach an agreement with China'). The article was very short, translating to less than 400 words in Chinese, with very conservative wording (neither confirming, denying, nor committing), and conveying limited information—this is 'deliberately vague' to guide expectations rather than confirm details.

Article Highlights:

Bessent stated that he is confident in reaching a trade agreement with China (to soothe the market).

There are still some technical details to be agreed upon between both parties; I believe this will definitely be reached, but it is not yet fully confirmed (the two sides may still be in contact).

Has not yet discussed this matter with Trump (no conclusion has been reached).

The negotiations between both parties in Stockholm were 'very difficult,' and China is a tough negotiator.

This news led to an immediate rise in U.S. stocks at the opening. However, as the tariff deadline approaches and threats of tariffs against Canada are issued, the market gave back its gains. Traders' reactions were not 'excited buying,' but rather 'profit-taking at highs.' It is expected that Trump will announce the tariff rates before 12:01 AM Eastern Time (12:01 PM Beijing Time).