China, Meta Stock and Trade Deal
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Investors eye more trade deals, updates from President Trump’s trip to the Middle East and fresh consumer inflation data after U.S. stocks soared Monday as investors celebrated major progress on U.S.-China trade talks.
U.S. equity futures nudged lower in early Tuesday trading as investors hit pause on one of the strongest rallies of the year heading into a key inflation reading prior to the opening bell. Stocks ended firmly higher on Monday,
UBS strategists led by Sean Simonds have a timely note about how now the questions will be less on policy uncertainty and more on outcome uncertainty.
The S&P 500 has rallied sharply since April lows, but investors should be prepared for the gains to fade as more trade deals are announced, BofA said.
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Adding fuel to the fire, the U.S. Dollar Index collapsed below the key 100 level last week, hitting its lowest level since April 2022. That may sound like a win for exports or gold, but when paired with rising yields and falling bond prices, it’s a signal that global capital may be exiting U.S. assets altogether.
The stock market looks like it's gone from pricing in the worst-case scenario to the best-case, Goldman Sachs stock chief David Kostin said.
Stocks closed modestly higher on Thursday after President Trump announced a new trade agreement with the United Kingdom. The S&P 500 gained 33 points, or 0.6%, to close at 5,664, while the Dow Jones Industrial Average rose 254 points, or 0.6%, to 41,368 points. The Nasdaq Composite added 1.1%.