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Treasury Secretary Bessent says ‘it's up to China' — not the US — to de-escalate trade war

1. Tariff de-escalation must come from China, says Treasury Secretary. 2. Investors hope for lower tariffs to ease supply chain issues. 3. China has exempted some semiconductors from tariffs amidst negotiations. 4. Trump's tariff reductions may influence negotiations with other countries. 5. Strong euro could prompt European Central Bank rate cuts.

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FAQ

Why Bullish?

Expectations of eased tariffs may improve market sentiment, as seen in previous trade deal optimism.

How important is it?

Changes in tariff rates directly affect inflation and corporate performance, impacting the S&P 500.

Why Short Term?

Immediate market reactions expected as negotiations progress, similar to past trade announcements.

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