Oleg Kalmanovich US Futures Rise on China Deal
The week starts with a rally: S&P 500, Nasdaq and Dow futures are up 2.4-4% after the unexpected trade deal between the US and China. Washington and Beijing agreed to reduce tariffs and a 90-day pause in escalation. Nasdaq 100 jumps almost 4%.
The parties agreed to reduce tariffs — the US from 145% to 30%, China — from 125% to 10%. The talks were held in Geneva with the participation of Treasury Secretary Bessent and Trade Representative Grier. The main message: “neither side wants a break.” Working consultations are ahead.
India and Pakistan — US-brokered truce
Trump announced a "complete and immediate ceasefire." Pakistan thanked the US, India has so far refrained from commenting. This further eases geopolitical tensions and contributes to the growth of stocks and cryptocurrencies.
Oil prices rise sharply amid the deal
Brent and WTI are up more than 3% — traders are pricing in increased demand and de-escalation of risks. Brent — $65.73, WTI — $62.87. This is a continuation of the growth that began last week.
Pharmaceuticals in the spotlight: Trump and the price hit
The US President is preparing an executive order to reduce drug prices by 30-80%. This caused Eli Lilly shares to fall by 2.25%, despite successful trials of the Zepbound drug.
What's coming: reports, inflation, and Powell
— CPI (Tuesday) and PPI (Thursday) to show whether tariffs and energy cuts have affected inflation
— US retail sales (Thursday): key to understanding consumer strength
— Jerome Powell's speech on Thursday - possible comments on the latest Fed meeting
— Reports: Home Depot (#HD), Lowe's (#LOW), Target (#TGT), Palo Alto Networks (#PANW), Snowflake (#SNOW)
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