From Yahoo Finance: 2025-05-10 14:35:00

Investors respond positively to U.S.-China trade talks, with the S&P 500 E-minis rising 1.3% and Nasdaq futures adding 1.6%. Details of negotiations to be released Monday, with Treasury Secretary and Trade Representative confirming a deal to cut the U.S. trade deficit. Chinese Vice Premier calls meeting a “candid” first step.

Signs of de-escalation between U.S. and China boost investor optimism, leading to a rebound in equities. Market participants wary of major breakthroughs despite recent comments by President Trump. Uncertainty remains high as both sides wait to see how the other copes with negative headwinds. Trade tensions escalated last month, with tariffs hitting 145% on Chinese imports and 125% on U.S. imports.

The S&P 500 stock index has nearly recovered from the steep losses seen after the tariffs announcement on April 2, down 8% from its all-time high in February and 4% for the year. Volatility remains a concern, with the Cboe Volatility Index hovering around 22. Establishing short positions betting on market declines remains costly due to potential market-moving statements by President Trump.

Investors advised to “sell on strength” as markets brace for continued volatility. Any progress in discussions would help China focus on domestic economic issues. Both nations may need to reach a deal but have little incentive to rush. Businesses warn of tariff impact and ongoing uncertainty.



Read more at Yahoo Finance: Investors welcome news of progress in US-China trade talks; US stock futures rise