1. Trump and Xi agreed on rare earths; tariffs reduced to 10%. 2. Federal Reserve cut interest rates by 25 basis points. 3. Big Tech earnings beat forecasts, with increased capex on AI. 4. Markets showed mixed reactions; Nasdaq rose while others fell. 5. Long-term rare earth deals may challenge China's dominance.
Reduced tariffs and Fed rate cuts could stimulate market growth, akin to past recovery periods. Similar Federal Reserve actions in 2019 led to significant market gains, suggesting possible bullish sentiment in the near future.
The interplay of tariff reductions and interest rate cuts serves as a catalyst for market optimism, especially for sectors within the S&P 500 heavily dependent on consumer spending and technology advancements.
Immediate impacts from Federal Reserve's rate cuts and tariff reductions will likely affect market sentiment in the next few months, evidenced by quick reactions observed after similar past announcements.