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U.S.-China talks 'a bit stalled' and need Trump and Xi to weigh in, Treasury Secretary Bessent says

1. U.S.-China trade talks are currently stalled, needing direct executive engagement. 2. Tariff rollback agreement reached, effective for 90 days until mid-August. 3. US maintains tech restrictions while China is slow to ease rare earths limitations. 4. Direct talks between Trump and Xi are expected but with cautious preconditions. 5. US to revoke visas for Chinese students, drawing sharp criticism from China.

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FAQ

Why Bearish?

Ongoing trade tensions and visa restrictions could negatively impact market optimism, reminiscent of past trade wars that depressed stock prices.

How important is it?

Trade relations heavily influence S&P 500 performance, given its composition of multinational corporations vulnerable to tariffs.

Why Short Term?

Immediate ramifications from trade discussions and actions are likely, impacting market sentiment in the near term.

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