Big news! The Sino-US tariffs are easing, and the US stock market is about to soar.

The high-level Sino-US economic and trade talks, which Wall Street is most concerned about, were held in Geneva, Switzerland from May 10th to 11th. The results of the negotiations were announced by the high-level Sino-US economic and trade officials just a few hours ago.

 

The high-level Sino-US economic and trade talks have made substantial progress. The bilateral tariff levels have been significantly reduced. The US side has cancelled 91% of the additional tariffs in total, and the Chinese side has correspondingly cancelled 91% of the counter-tariffs.

 

The US side has suspended the implementation of the "reciprocal tariffs" at a rate of 24%, and the Chinese side has also correspondingly suspended the implementation of the counter-tariffs at a rate of 24%.

 

As of the time of writing, the futures of NASDAQ, Dow Jones, and S&P have all surged.

There is no doubt that the US stock market will soar tonight.

 

The capital market emphasizes the "expectation gap". The result of this negotiation far exceeds the general expectations of the market. None of the various analysts expected such a result. Everyone generally thought that it was just a formal establishment of contact.

 

Both the UK and China have a tariff rate of 10% now.And I think that 10% may serve as a standard for future negotiations.

 

I think Trump's problem now is that 10% may be a bit too low.

 

The total import and export volume of the United States in 2024 is 3.19 trillion US dollars, and the total import volume is 4.11 trillion US dollars. Charging at a rate of 10% simply cannot solve the problem.

 

At present, I can't figure out what Trump is thinking. A few days ago, I said that the hidden dangers affecting the medium and long-term trend of the US stock market have not been eliminated. The US deficits and inflation cannot be solved under the current situation of tariffs, and I am bearish in the long term.

 

However, with this news today, the logic may change. We need to observe more. For more detailed analysis, we will talk about it later. Let's first look at the opening trend of the US stock market today.