Markets kicked off the week on a high note as a major breakthrough in U.S.-China trade relations sent futures climbing and boosted investor sentiment.
1. Futures Jump on U.S.-China Trade Agreement
U.S. stock futures surged Monday after the U.S. and China announced a significant rollback of tariffs, marking a potential turning point in the long-running trade dispute. Markets were subdued last week ahead of the talks, but optimism has returned following progress in Switzerland-based negotiations.
2. Tariff Rollback in Focus
In a rare joint statement, Washington and Beijing revealed plans to pause further tariff increases for 90 days. The U.S. will reduce tariffs on Chinese goods to 30%, while China is cutting duties on U.S. imports to 10%. The move signals a renewed willingness to stabilize trade relations.
3. CPI Data to Watch
Investors are closely watching this week’s release of April’s Consumer Price Index (CPI) from the U.S. Labor Department. Analysts expect CPI to remain steady at 2.4%, a key gauge of inflation that could influence Federal Reserve policy.
4. Pharma Stocks Slide
Pharmaceutical stocks took a hit after President Trump unveiled plans for an executive order to cut U.S. drug prices by as much as 80%. This initiative could significantly impact international drugmakers that depend heavily on U.S. revenues.
5. Oil Prices Rise
Crude prices climbed on Monday, extending last week’s gains. The easing of U.S.-China trade tensions is boosting hopes for stronger global demand, as the world’s two largest oil consumers appear closer to resolving their economic rift.
