US-China Trade Eases, but Global Tensions Keep Markets on Edge 👀
The US and China are nearing a trade deal, with Trump scaling back tariff hikes to a 55% mix of reciprocal, fentanyl-related, and legacy tariffs, though tech export restrictions, especially on chips, signal ongoing supply chain splits. Middle East tensions spike as the US pulls diplomats amid fears of an Israeli strike on Iranian nuclear sites, driving Brent crude up 7-9% and pushing investors toward safer assets. Treasury Secretary Scott Bessent hints at delaying tariff deadlines and promotes a pro-industry bill, while brushing off Fed chair rumors. Trump pushes for a full-point Fed rate cut after weak CPI data. In crypto, institutional interest grows—GameStop considers Bitcoin, Ethereum ETFs see strong inflows, and Solana ETFs near approval.
This is a mixed bag of hope and headaches. The US-China trade thaw is a win, but the tech war and Middle East risks are keeping markets jittery. Bessent’s playing a smart game, balancing growth and caution, but Trump’s rate-cut pressure could stir trouble if it backfires. The crypto surge is a bright spot—big players jumping in shows it’s going mainstream. Still, with oil spiking and geopolitics heating up, I’d stay cautious and keep some powder dry for safer bets.
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