Asian Markets Slump as Early U.S. Trade Deal Hopes Fizzle—Here’s Why It Matters
Fading optimism over U.S. trade agreements sends Asian markets into retreat—proof that even 'sure bets' in global finance can vanish faster than a meme coin's liquidity.
The optimism trap
Traders woke up to red screens as early bullish sentiment collapsed under the weight of reality. Another lesson that trade deals—like crypto rallies—are never done until they're done.
Domino effect
When the U.S. sneezes, Asia still catches a cold. The market dip reveals how traditional finance remains yoked to geopolitical whims—meanwhile, Bitcoin keeps mining blocks, utterly indifferent.
Cynical takeaway
Wall Street analysts will spin this as 'healthy correction' while quietly trimming their positions. Some things never change—whether in fiat markets or decentralized ones.
US stocks mostly remained flat
In the United States on Monday, stocks remained in a quiet session after Washington agreed to impose a 15% tariff on automotives and other goods from the EU, a rate below previous threats. Wall Street now faces a week filled with potential flashpoints, notably the Federal Reserve’s interest‑rate decision on Wednesday.
Investors generally expect the Fed to hold rates steady and defer cuts until September, though a few of Trump’s appointees could press for an earlier move. The central bank has kept rates unchanged this year after several cuts in late 2024.
S&P 500 remained almost flat on Wall Street, rising less than 0.1% to 6,389.77, marking its sixth consecutive record close. The Dow Jones Industrial Average lowered by 0.1% to reach 44,837.56. At the same time, the Nasdaq Composite edged up by 0.3% to reach 21,178.58.
Stocks of Tesla rose about 3% after CEO Musk said the electric car maker signed an agreement with Samsung, possibly worth over $16.5 billion to supply computer chips. Samsung’s stocks in Seoul jumped 6.8%. Other AI and chip names also climbed: Advanced Micro Devices gained 4.3% and Super Micro Computer rose 10.2%, following last week’s boost from Alphabet’s $85 billion AI investment plan.
In commodities trading, benchmark U.S. crude oil edged up 1 cent to $66.72 per barrel, while Brent crude, the international benchmark, added 6 cents to $70.10. In foreign exchange markets, the U.S. dollar strengthened to 148.56 Japanese yen from 148.54, and the euro ROSE to $1.1600 from $1.1593.
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