U.S.-China Trade Deal Fuels Market Optimism

A landmark trade agreement between the United States and China was announced on May 12, 2025, providing much-needed respite to escalating tensions between the two economic powerhouses. The deal, which features significant tariff reductions, aims to ease existing frictions and foster renewed economic cooperation. This positive development has bolstered market confidence, leading to a surge in major stock indexes like the S&P 500. Investors are optimistic about the potential for continued dialogue between the countries, particularly as the agreement may signal a shift away from a full decoupling of the two economies.