From Yahoo Finance: 2025-06-11 17:03:00

1. Global markets reacted positively to the US-China trade deal framework, but the gains were erased by Middle East tensions. Wall Street ended the day in the red, with the S&P 500 falling 0.3% and the Nasdaq losing 0.5%.
2. The trade deal involves China removing export restrictions on rare earth minerals, and U.S. tariffs on Chinese goods totaling 55%. Despite President Trump’s enthusiasm, investors remain cautious due to past unpredictability in tariff announcements.
3. U.S. equities rebounded, raising concerns about high valuations compared to bonds. The equity risk premium is near historically low levels, prompting warnings of a potential equity sell-off due to mean reversion.
4. Bonds are seen as a bargain compared to stocks, with U.S. fixed income assets at their cheapest relative to equities in over 50 years. Concerns about Washington’s spending and inflation have kept bond yields high.
5. Investors are advised to be cautious of stretched valuations and potential market fluctuations. Key market movers for the next day include India CPI inflation, UK trade and industrial production data, ECB speeches, and U.S. Treasury auctions.

Read more at Yahoo Finance: Good vibrations turn sour