Recession Fears Fade After Tariff Agreement With China
Forecasters downgraded the predicted chances of a recession after Monday's surprise trade deal between the U.S. and China, but the economy isn't out of the woods just yet.
Forecasters downgraded the predicted chances of a recession after Monday's surprise trade deal between the U.S. and China, but the economy isn't out of the woods just yet.
Stocks are rallying on trade hopes, but risks remain.
The S&P 500 on Monday was on track to close above its 200-day moving average, a key technical support level that could set the index up for further gains.
U.S. stocks soared Monday after Washington and Beijing struck a surprise deal to dramatically cut tariffs, marking a rare moment of clarity and good news in an otherwise volatile environment.
US stocks surged on Monday after President Donald Trump’s top trade officials brokered a surprisingly dramatic de-escalation in trade tensions with China over the weekend, dropping tariffs to much lower levels, which some economists say could stave off a US recession.
U.S. stocks leapt after China and the United States announced a 90-day truce in their trade war. The S&P 500 jumped 3.3% Monday. The Dow Jones Industrial Average rose more than 1,100 points, and the Nasdaq composite rallied 4.3%.
U.S. stocks leapt after China and the United States announced a 90-day truce in their trade war. The S&P 500 jumped 3.3% Monday. The Dow Jones Industrial Average rose more than 1,100 points, and the Nasdaq composite rallied 4.3%.
Investors need to remember there were questions about end markets even prior to the tariff announcements, and the shares could take time to fully recover. Over the weekend, the United States and China laid out the framework for a trade deal and suspended some of the most onerous tariffs imposed by the two countries. It isn't a done deal yet, but shares of heavy equipment companies that were facing a two-sided blow from the tariffs are rallying on the news.
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