US markets are cheering positive signs from trade talks with China over the weekend
Brendan McDermid/REUTERS
- Markets are up after US-China trade talks in Switzerland over the weekend.
- The S&P 500 is trading near levels seen before Trump released a slew of tariffs on "Liberation Day."
- Nomura analysts warn markets may be disappointed if US tariffs on Chinese goods remain high.
Markets are in a cheery mood after trade talks between the US and China in Switzerland over the weekend yielded what both sides described as encouraging progress.
Treasury Secretary Scott Bessent hailed "substantial progress" following "productive" discussions. Details are expected Monday, he said in a statement.
Chinese Vice Premier He Lifeng described the talks as "candid, in-depth and constructive."
US futures were up strong at 11:20 p.m. ET on Sunday.
- S&P 500 futures: +1.4% at 5,756.25
- Dow Jones futures: +415 points or 1% at
41,738.00 - Nasdaq 100 futures: +2% at 20,529.25
The S&P 500 has nearly recovered to pre-"Liberation Day" levels. On April 2, the index plunged 10% over two days after Trump announced a slew of tariffs on dozens of countries. The index is now about 6% lower than its February record high of 6,144.
"The stock market seems to have discounted the apparent simmering down of geopolitical tensions," veteran analyst Ed Yardeni wrote in a note on Sunday.
Improved risk appetite pushed haven assets lower on Monday:
- Spot gold: -1.3% at 3,282.04 per ounce
- USD/JPY: +0.3% at 145.81
- USD/CHF: +0.3% at 0.8333
Asian equities were also higher, though gains were limited due to investor caution:
- Nikkei 225: +0.1% at 37,519.80
- Kospi: +0.5% at 2,589.48
- ASX 200: +0.2% at 8,245.5
- Hang Seng Index: +0.6% at 23,006.1
CSI 300: +0.6% at 3,869.8
"Continued progress on trade front has been clearly positive for risk markets. But scope for disappointment exists if there is no significant reduction in China tariffs," analysts at Nomura wrote in a note on Monday.
President Donald Trump has imposed a combined 145% tariff rate on Chinese imports. China's levies on American goods are 125%.