Latest news with #tradedeal
Yahoo
9 hours ago
- Business
- Yahoo
S&P 500, Nasdaq hit record highs as markets rebound from April's tariff despair
The S&P 500 and Nasdaq both hit all-time highs late Friday morning after President Donald Trump said that the U.S. had signed a new trade deal with China. Just two months ago, the markets seemed to be in crisis as investors despaired over the effects of President Donald Trump's sweeping set of tariffs. Now, the markets are jubilant. Late Friday morning New York time, the S&P 500 notched a new all-time high of 6,184 points as the stock index jumped 0.7% over the past three hours. The Nasdaq also hit an all-time high of 20,310 as it rose 0.65% since markets opened. The Dow Jones was up 1.1% and flirting with its own record. The rally came after Trump said Thursday at a White House event that his administration had just signed a trade deal with China. The 47th president did not initially provide details, but Treasury Secretary Scott Bessent said Friday during an interview on Fox Business Network that he expects China's supply of rare earth minerals to flow back into the U.S. A Chinese government official later confirmed that the People's Republic will speed up its export of minerals like dysprosium and terbium, which are used for heat-resistant magnets. Bessent also said that the U.S. has 18 'important trading partners' with whom the federal government is negotiating. He said he expects those deals to be struck by Labor Day, a longer timeline than the initial July 9 deadline he had previously prescribed. The stock markets' euphoric Friday is a welcome change-of-pace for the Trump administration. Shortly after the president's inauguration on January 20, investors pushed markets to new highs in February as they bet Trump's pro-business stance would buoy the economy. However, amid the administration's chaotic cutbacks in the federal government, spearheaded by Tesla CEO Elon Musk, markets slid. In April, the market selloff became even more dramatic when Trump unveiled a severe array of tariffs on the U.S.'s largest trading partners. Ten days after Trump's announcement on April 2, which he deemed 'Liberation Day,' global equities shed $10 trillion. The stock market plummet ranked among some of the worst in U.S. history, and the retreat during Trump's first 100 days in office was the S&P 500's worst start to a presidential term since Gerald Ford took office in 1974 and the fifth worst since 1928. The chaos seeped into the bond markets, as interest rates on 20-year U.S. Treasurys rose, a signal of the lack of investor confidence in U.S. government-issued debt. The bond market turmoil reportedly prompted Trump's administration to retreat from some of its more aggressive trade war rhetoric. And, while the 47th president sometimes reverted back to bombastic threats against China and other major trading partners on social media, his administration worked to strike trade deals and stave off a broader economic slide in the U.S. By early May, the S&P 500 had regained the losses it sustained after 'Liberation Day.' And then, the stock index continued its upward march as inflation and other indicators showed that Trump's tariff war hadn't yet seeped through the economy. In June, the Bureau of Labor Statistics released a report that inflation hadn't meaningfully crept up post Trump's tariff reveal. In April, inflation was 2.3%, and, in May, the rate rose only 0.1% to 2.4%. Update, June 27, 2025: Added in more context surrounding Trump's trade war and retreat from his most aggressive tariff-related rhetoric. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
16 hours ago
- Business
- Bloomberg
Trump Says US 'Probably' Has Four or Five Trade Deals
President Donald Trump says the US has made a trade deal with 'probably four or five different countries,' naming agreements with China and the UK. Trump also says they're close to reaching a deal with India. He speaks at the White House. (Source: Bloomberg)
Forbes
17 hours ago
- Business
- Forbes
China Market Update: Xiaomi Roars Silently, Trade Deal Details Needed, Week In Review
CLN Asian equities ended a positive week mixed, as Japan outperformed, while Indonesia and Malaysia were closed for the Islamic New Year, which is also known as Hijri New Year, marking the start of the Islamic calendar. Yesterday, we wrote about Harvard's Graham Allison stating at the Summer Davos that the US and China would announce a trade deal next week. Commerce Secretary Lutnick confirmed that such a deal had been signed after the US markets' close. China's Ministry of Commerce (MoC) confirmed the deal at a 3 pm press conference. When a Reuters reporter asked about China releasing rare earths, the answer was 'China will approve the export applications of qualified controlled items'. A lack of details on the new agreement, combined with strong performance from earlier this week, explains the lackluster returns in Asia overnight. Investors probably need to hear more, though the Wall Street Journal correctly notes the recent regulation of two fentanyl precursors following a meeting with US Ambassador Perdue. One negative weighing on markets was May's industrial profits, which declined 9.1% year-over-year (YoY) from April's 3.0%. This brings the year-to-date (YTD) change in industrial profits to -1.1% from April's YTD increase of 1.4%. The main culprit appears to be the high bar presented by the YoY comparison, as industrial profits, sales, and receivables all increased on a month-over-month basis. National Bureau of Statistics (NBS) statistician Yu Weining stated that 'short-term factors such as investment income had a high base in the same period last year', as 'multiple factors such as insufficient effective demand, falling industrial product prices, and short-term fluctuations' influenced the readings. Xiaomi was Hong Kong's most heavily traded stock by value, gaining +3.6% on a massive volume worth HKD 28.7 billion (481 million shares traded) versus 126 million shares traded yesterday. The company received 289,000 orders for its new YU7 SUV, which will cost RMB 253,000 ($35,366). Guotai Junan International shares fell -14.69%, though they remain well above Tuesday's close, which was before their cryptocurrency trading approval in Hong Kong and subsequent surge. Markets in Hong Kong and Mainland China were weighed down by the poor performance of subsectors that are large index weights, including large banks, insurance companies, liquor, oil & gas, and telecom. The underlying stocks are mainly listed on the Shanghai Stock Exchange, representing a 0.70% weight, which explains its underperformance versus the Shenzhen Component Index, which gained +0.34%. Technology hardware, arguably a beneficiary of better US-China trade talks, mining, precious, and base metals all had good sessions. A non-factor in last night's performance was the Monetary Policy Committee Q2 press release from the People's Bank of China (PBOC), China's central bank, following their June 23rd meeting. The release acknowledges that the 'current external environment is more complex and severe, the momentum of world economic growth is weakened, and trade barriers have been increased'. However, 'China's economy is showing a positive trend, social confidence continues to be boosted, and high-quality development has been steadily promoted.' Because the economy '…still faces difficulties and challenges such as insufficient domestic demand…', the PBOC will 'implement a moderate loose monetary policy, strengthen countercyclical regulation, better play the dual functions of the total amount and structure of monetary policy tools, increase the coordination between monetary and fiscal policies, and maintain stable economic growth and reasonable prices.' Premier Li and the State Council met to discuss plans on implementing the 'National Science and Technology Conference and accelerating the construction of a strong science and technology country'. The release highlighted policies on how to 'accelerate the high-level self-reliance in science and technology'. Hopefully, we will see a bigger market reaction as the trade deal details are released. MSCI China's earnings per share (EPS) growth estimate for the next year is 7.44% (S&P 500's 6.32%, Euro Stoxx's is 2.77%). The problem with buying the broad benchmark is that not all sectors are growing that fast. For instance, MSCI China's Financial Sector, which makes up about 18% of the index, has an EPS growth estimate for the next year of only 0.99%. On the other hand, MSCI China's Technology Sector has an EPS growth estimate for the next year of 55%! Draw your own conclusion, though I think you can guess where my chips are placed! In preparing to speak to a foreign institutional investor, I realized that one of the largest companies in that country is a commodity producer that generates 50% of its revenue in China. In March, Brazilian mining giant Vale's CEO, Gustavo Pimenta, stated, 'The tone has changed a lot. Economic activity has reacted. There has been a lot of stimulus for consumption, heated manufacturing, and consistent investment in infrastructure.' Sounds positive to me! Live Webinar Join us Thursday, July 10, at 11 am EDT for: $5 Trillion Humanoid Robotics Opportunity – Capitalizing On The Boom Please click here to register New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read Chart1 Chart2 Chart3 Chart4 Chart5 Chart6
Yahoo
18 hours ago
- Business
- Yahoo
US, China agree on deal for tariffs, rare-earth magnets
The U.S. and China have agreed on a trade deal that would reduce tariffs and expedite shipments of rare-earth metals. United States Treasury Secretary Scott Bessent said on Friday that U.S. tariffs on Chinese imports will now start at 30%, while China's duty rate on goods from the U.S. will be at 10%. The 20% fentanyl levy on China will also stay in place. In April, the Trump administration hit Chinese imports with a 145% tariff rate. China retaliated by slapping a 125% tariff on goods imported from the U.S. 'Now our tariffs are at 30% on them, we're at 10%,' Bessent said on Fox Business. 'We're collecting a substantial tariff income.' President Donald Trump announced the agreement with China on Thursday during a news conference that 'We just signed with China yesterday,' without further explanation. China's Commerce Ministry confirmed that both nations have reached a framework for a deal in a statement on Friday. 'China will review and approve export applications for controlled items that meet the required criteria, while the United States will lift a series of restrictive measures previously imposed on China,' the country's Ministry of Commerce said in a statement to China Daily News. U.S. levies on Chinese goods stood at an average of 51.1% for most imports before Thursday's trade deal was announced, while China's duties on American products were at 32.6%, according to the Peterson Institute for International Economics. Bessent also said China has agreed to remove its restrictions on exports of rare-earth metals. On April 4, China began restricting exports of rare-earth magnets to the U.S., which are used in high-tech products such as computer chips and electric vehicle batteries. 'We have an agreement with them that will make magnets flow to everyone who had received them before on a regular basis,' Bessent said. The post US, China agree on deal for tariffs, rare-earth magnets appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
a day ago
- Business
- Wall Street Journal
White House: China Trade Deal Signed, Several More to Come Before July 9
President Trump said the U.S. had signed a trade deal with China, while Commerce Secretary Howard Lutnick said the White House is close to agreements with several trading partners, ahead of the July 9 deadline. "We just signed with China," Trump said Thursday afternoon. "We're having some great deals. We have one coming up, maybe with India, a very big one." The deal formalizes the pact struck in Geneva last month, under which China agreed to speed up the delivery of of rare-earth minerals and magnets containing them.
