Stocks Mixed as Wall Street Watches U.S.-China Trade Negotiations
Wafricnews - June 9, 2025
Global markets are watching closely as the U.S. and China rekindle trade talks in London, with investors hoping for calm in an otherwise tense economic climate. On Monday, U.S. stock performance was mixed, reflecting both optimism and caution.
The Dow Jones Industrial Average dipped 75 points, while the S&P 500 remained flat, and the Nasdaq Composite edged up by 0.15%. Though modest, the S&P 500’s rise kept it within striking distance of a new all-time high — a signal of how hungry investors are for good news.
The renewed dialogue between Washington and Beijing follows a phone call last week between President Donald Trump and Chinese President Xi Jinping. The two leaders are expected to set the tone for the next phase of trade relations between the world’s largest economies.
Markets Breathe Easier, but Tension Remains
Wall Street has rebounded over the past two months, largely due to Trump easing off his earlier aggressive tariff proposals. In April, the S&P 500 came dangerously close to entering a bear market but has since rallied more than 20%, bolstered by optimism around trade and better-than-expected economic data.
“Markets have moved higher on tariff postponement and the perception that they will be more moderate than initially announced,” said Richard Saperstein, Chief Investment Officer at Treasury Partners. “But they remain headline-sensitive.”
Investors are hoping this week’s discussions will lead to a breakthrough — or at least, no new escalation.
A Wild Ride to the Top
The S&P 500 previously hit its record high of 6,144.15 on February 19, before plunging to 4,982.77 in early April amid fears of a full-blown trade war. Since then, the index has staged an impressive comeback and now sits just above 6,000.
Major banks, including Goldman Sachs, UBS, JPMorgan, and Deutsche Bank, have revised their year-end targets for the S&P 500 upwards, reflecting a more optimistic outlook as tariff threats appear to ease.
According to CFRA strategist Sam Stovall, if the S&P 500 reaches a new high, it will mark the end of the correction that began in March when the index dropped 10% from its February peak. Historically, such recoveries have led to an average market gain of 10% in the following four months.
Still, analysts warn that nothing is guaranteed.
“Absent major policy surprises, the path of least resistance is to new highs,” wrote JPMorgan Chase analysts in a recent note.
By WafricNews Desk.
By WafricNews Desk.
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