In a surprise but hugely positive change of pace, the United States and China have come to a tentative accord in London about their trade ties. Next, this deal will go for approval from U.S. President Donald Trump and Chinese President Xi Jinping. Here’s what these two leaders are likely to say about their landmark deal. Their testimony could help decide the economic relationship between the two countries for years to come.
The continued trade talks between the U.S. and China continue to be the talk of the town for everyone from investors to analysts. As tensions escalate among many international markets, the result of these talks could mean everything. As it stands today, the U.S. has high tariffs on a number of Chinese imports. Now, Commerce Secretary Howard Lutnick has signed off on these tariffs remaining at their current heights. As President Trump has noted, “We are getting a total of 55% tariffs, China is getting 10%,” highlighting the disparity in trade policies.
That includes the President Trump’s own tariff pause, which is scheduled to expire on July 9, making the clock ticking on the urgency of the situation. The Street, of course, is watching grimly from the sidelines. They’re particularly interested in this area with respect to trade with China, the United States’ largest trading partner. If true, the ramifications of this deal would change not only the terms of bilateral trade but the economic playing field.
U.S. crude oil futures shot up as much as 4%. This increase occurred immediately following President Trump’s skepticism about the prospects of a nuclear deal with China. This increase is a result of investor response to geopolitical concerns and economic predictions.
Futures on the S&P 500 were down by 0.27%. At the same time, Nasdaq 100 futures fell 0.25%, a sign of caution from investors. The S&P 500 broader market index was down about 0.3%, while the tech-heavy Nasdaq was down about 0.5%. Investors are now looking ahead to May’s reading of the producer price index, set to be released at 8:30 a.m. ET on Thursday.
Despite these challenges, Oracle’s shares rose more than 7% in extended trading following the software maker’s better-than-expected financial results. The firm followed that up with a 1QFY25 revenue forecast for cloud infrastructure that was over 70% higher than fiscal 2026. This announcement has renewed investor confidence in the company’s growth prospects.
Scott Bessent, a prominent financial analyst, emphasized the importance of ongoing negotiations. “Roll the date forward to continue good faith negotiations.” His comments underline the necessity for continued dialogue between the U.S. and its trading partners to foster a stable economic environment.
Tensions continue to mount between the U.S. and Iran. Market participants are especially on the lookout for how these geopolitical concerns could affect ongoing trade negotiations.