US, China Trade Deal Boosts Markets, cpi data today Shows 2.3% Increase
The agreement reduces tariffs to 10%, sparking a positive reaction in the markets, while the CPI data shows a lower-than-expected annual increase, with core inflation at 2.8%, and its impact on the global economy will be closely monitored, with investors awaiting further developments.
The US and China have agreed on a trade deal, reducing tariffs to 10%, sparking a rise in S&P 500 futures by 0.1% as investors await inflation data, with the consumer price index increasing 2.3% annually in April, lower than expected.
The trade deal between the US and China has brought a sense of relief to the markets, with investors reacting positively to the news. The reduction in tariffs is expected to boost trade between the two countries, with the S&P 500 futures rising as a result. The consumer price index (CPI) data released today shows an annual increase of 2.3% in April, which is lower than expected, with core inflation at 2.8%.
The news has also led to a mixed reaction in the Asia-Pacific markets, with Hong Kong's Hang Seng Index down 1.87% and China's CSI 300 up 0.15%. The trade deal is expected to have a positive impact on the global economy, with Goldman Sachs cutting the recession risk to 35% after the Chinese tariff pause. UnitedHealth has suspended its 2025 outlook, with CEO Andrew Witty stepping down, while SoftBank's Vision Fund has posted an annual loss.
In other market news, stocks such as Archer Aviation, Rigetti Computing, and Coinbase have made significant moves after the bell, with Archer Aviation up 5%, Rigetti Computing down 13%, and Coinbase up 8%. The market is expected to continue to react to the trade deal and inflation data, with investors keeping a close eye on the developments.
The trade deal between the US and China is a significant development, and its impact on the markets will be closely watched in the coming days. The CPI data released today provides valuable insights into the state of the economy, and investors will be looking to see how the trade deal affects the economy in the long term.