US Treasury chief Bessent says ‘substantial’ trade framework with China reached

💡 DMK Insight

Negotiations easing the threat of 100% tariffs could shift market sentiment significantly. For traders, this development is crucial as it may stabilize affected sectors, particularly in commodities and imports. If tariffs are indeed lifted or reduced, we could see a rebound in stocks related to trade, especially those that have been under pressure due to tariff fears. Watch for potential movements in sectors like agriculture and manufacturing, which are often sensitive to trade policies. The broader market context suggests that easing trade tensions could lead to a more risk-on environment, encouraging investment flows back into equities. However, keep an eye on any counter-moves from China or other trading partners, as retaliatory measures could still surface, creating volatility. In terms of timing, immediate reactions could be seen in the next few trading sessions, so stay alert for any official announcements or updates from the White House that could impact market dynamics.