1. S&P 500 futures rose 2.7% amid trade negotiation news. 2. Trump's tariffs could worsen inflation and recession fears. 3. JPMorgan and Goldman Sachs raised recession odds significantly. 4. Countries like Japan and Indonesia are negotiating concessions. 5. Vietnam seeks to delay tariffs, enhancing negotiation efforts.
Although tariffs may create inflation concerns, stability from negotiations can support market recovery. Historical examples show that trade negotiations can often lead to positive market responses, similar to prior trade talks between the US and China before tariffs took hold.
The article reflects significant geopolitical developments impacting market sentiment, though uncertainty remains around inflation and recession risks. These factors can lead to noticeable volatility in major indices like S&P 500.
Short-term negotiations can alleviate immediate market fears; however, long-term impacts depend on the outcome of tariffs and inflation. Temporary positive sentiment is driven by hopes for reduced tariffs in the near future.