U.S. stock futures fell modestly this morning. The market investors remain squarely focused on U.S.-China trade deals. Overall market sentiment has jumped in the past few days. This increase coincides with increasing optimism around a possible breakthrough with our largest trading partners, despite no trade deals formally being declared yet. The S&P 500 is burning it up these days! It recently hit its best streak of victories in almost 20 years — its longest winning stretch since November of 2004.
Chinese authorities are already looking ahead to the possible launch of trade negotiations with the U.S. This underscores their stated commitment to engage in a public, transparent, and deliberative process. The U.S. only made recent overtures to begin discussions with China. This announcement comes on the heels of a transparency that was first chronicled by The Wall Street Journal. It’s easy to see why a new opening for dialogue would encourage optimism among investors. This euphoria is powering the current boom in the stock market.
On Friday, the S&P 500 jumped almost 1.5%. That made it its ninth straight gain today, recovering all losses since President Donald Trump said he would impose retaliatory tariffs on April 2. As of Sunday night, futures linked to the S&P 500 were down 0.2%. They even edged down an additional 0.3% on Monday morning, showing nervousness in the markets.
Ryan Dykmans, chief investment officer at Dunham & Associates Investment Counsel, urged investors not to get carried away by the current market rally. He stated, “We do see this run up as being more based on excitement than actual, solid — not just fundamentals, but an actual change.”
While the U.S. has not finalized trade agreements with other countries, Commerce Secretary Wilbur Ross mentioned that a trade deal with an unnamed country is awaiting approval. This inspiring news highlights the persistent demand and interest in developing new, mutually beneficial trade relationships that would boost our economy.
As investors await further developments regarding potential trade negotiations, the stock market remains on edge, influenced by global economic conditions and domestic policy decisions. That’s why talks between U.S. and Chinese officials are so important. Their result could have a large impact on the market’s trajectory over the next few weeks.