U.S.-China Trade Talks Show Promise—Traders Brace for Market Surge
Wall Street''s algorithms are already licking their chops—the U.S. just signaled smoother sailing in trade negotiations with Beijing. Cue the synchronized rally: equities and the dollar look poised for a sugar rush.
Funny how ''constructive dialogue'' always translates to ''buy the rumor'' in trader-speak. Just don''t ask what happens when the geopolitical caffeine wears off.
US Commerce Secretary Lutnick says trade talks with China are going well and will continue all day.
— Watcher.Guru (@WatcherGuru) June 10, 2025
President Donald TRUMP also said on Tuesdayas the discussions progress. The talks come after data from the Customs Department shows that China’s exports to the US plunged 34.5% in May. This was the steepest fall recorded since the outbreak of the Covid-19 pandemic in 2020.
US & China Trade Talks Reshaping Global Policies
Trump’s tariffs have reshaped global trade with new policies and deals being rewritten in the last three months. Many countries have agreed to drop customs on US goods entering their borders fearing major economic loss. The US on the other hand, has also been impacted as the dollar remains under severe pressure.
Reports suggest that both the US and China may agree to some concessions on goods for rare earth magnets. The metals are a crucial component for electric vehicle motors and the Communist country controls the supply which the US needs. There would besaid Kelly Ann Shaw, former WHITE House trade adviser during Trump’s first term in the Oval Office.
The DXY index, which measures the performance of the US dollar shows the currency struggling to climb above the 100 level. It is hovering around the 98 to 99 range for over two months and slipped back after hitting 100. China has been a tough negotiator and imposed counter-tariffs in both double and triple digits.
