1. Trump endorses US-China trade deal for rare earth minerals supply. 2. Tariffs on China may rise to 55%; Trump claims trade relationship is strong. 3. China's easing of export restrictions has temporary effects; major industries impacted. 4. US inflation rate rose slightly to 2.4%, raising Fed rate cut speculation. 5. Economists predict Fed will likely maintain current rates amid trade uncertainties.
A trade deal improving supply of critical materials can boost US industrial stocks, enhancing S&P 500 performance, much like previous stabilization in trade policies positively affected market sentiments in 2019.
The trade agreement directly affects crucial industries impacting S&P 500's largest sectors, particularly automotive and electronics, making it a significant news event.
Initial market reactions may occur quickly as traders respond to the news, but long-term impact depends on enforcement and actual outcomes of the trade deal, similar to past agreements causing temporary market boosts.