Investor risk appetite rebounded over the week as the U.S. administration signaled a de-escalation in trade tensions with China. President Donald Trump also reassured markets that he has no intention of firing Federal Reserve Chair Jerome Powell.
Reports suggested China is considering suspending its 125% tariff on select U.S. imports, following indications that Washington may cut tariffs on Chinese goods. Trump hinted that negotiations with Beijing are ongoing, even as Chinese authorities denied any such talks were taking place.
The sell-off that had weighed on U.S. Treasuries and the dollar the previous weeks came to a halt, as investors found reassurance in the central bank’s independence.
The S&P 500 has now recouped nearly 80% of the losses suffered since the post–April 2 “Liberation Day” downturn.
Yet, recent business and consumer surveys paint a less …