1. Treasury Secretary expects U.S.-China tariff negotiations will de-escalate. 2. Current elevated tariffs are unsustainable for both nations. 3. Negotiations haven't started, but a possible deal is anticipated. 4. Tariffs on Chinese goods include rates up to 145%. 5. China has raised tariffs on the U.S. to 125% as of April 12.
Historically, reductions in trade tensions have positively influenced S&P 500 performance. For example, in 2020, reduced trade tensions contributed to a market surge.
The potential for easing trade tensions directly influences corporate profitability and investor confidence, which impacts the S&P 500 significantly.
Trade agreements are typically expedited and can quickly affect market sentiment. Recent deals have shown rapid price movements in the S&P 500.