U.S. stock futures surged at the start of the week, driven by optimism surrounding renewed trade talks between the United States and China. This positive momentum is boosting investor sentiment, with hopes that tensions between the two economic giants might ease. Although inflation fears continue to loom over markets, the recent rally signals a fresh wave of market optimism.
Markets React Positively to U.S.–China Trade Progress
Dow Jones futures jumped over 480 points, or 1.2%. S&P 500 futures climbed 1.6%, while Nasdaq 100 futures led the rally with a 2.2% surge. This upward movement followed high-level trade talks in Switzerland over the weekend, which U.S. Treasury Secretary Scott Besant described as “productive.” He also promised more transparency during a Monday briefing, although details remain limited.
Last week, the market mood was quite different. All three major indices fell, and the Dow Jones ended its two-week winning streak. Inflation fears weighed heavily on investor sentiment, intensified by aggressive tariffs. The U.S. imposed a 145% tariff on Chinese imports, met by a 125% retaliatory tariff from Beijing—both of which could hit American consumers hard.
Investors Eye Key Inflation Data and Earnings Reports
Beyond trade developments, markets are closely watching key economic data this week. The April Consumer Price Index (CPI) report is due Tuesday, followed by retail sales and the Producer Price Index (PPI) on Thursday. These reports will offer the first clear insights into how tariffs are affecting inflation.
On the corporate front, several major earnings reports are expected. On Monday, Fox Corporation (FOXA), Monday.com (MNDY), and Chegg (CHGG) will release results. Later in the week, Sony (SONY), Alibaba (BABA), and Walmart (WMT) will report, potentially influencing broader market sentiment.
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