The negotiations between the US and China in Geneva have sparked optimism in the stock markets, while the crypto sector remains cautious. Key aspects of the agreement and its economic impact are discussed.
Stock Market Optimism
The talks between the US and China have accelerated growth in the stock markets. The White House announced a 'meaningful step toward fair trade and economic stabilization.' US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng announced a 90-day plan to roll back tariffs. US tariffs on Chinese goods will decrease from 145% to 30%, while China will reduce its tariffs on American imports from 125% to 10%. These developments have created significant bullish signals across major indices like the S&P 500 and Nasdaq.
Cryptocurrency Market Reaction
Despite the positive news, the cryptocurrency market witnessed a downturn. Major altcoins such as Solana, Dogecoin, and XRP fell between 3% and 5%. Bitcoin remained stable, yet lacked the expected upward momentum. Market participants attribute the crypto decline to uncertainty surrounding the specifics of the trade deal.
Overall Global Market Dynamics
In addition to US equities, global assets responded positively. Gold prices dipped slightly, indicating a higher risk appetite among institutional investors, whereas oil futures rose by 0.8%. Asian markets like Japan's Nikkei 225 and Hong Kong's Hang Seng Index also showed gains. Europe opened with cautious optimism, reflecting lingering questions about the agreement's implementation.
The outcomes of the US-China trade discussions have provided a bullish spark to stock markets, yet the crypto sector remains more reserved, waiting for further details and future negotiations before engaging actively. Crypto investors seek clear signals regarding policies related to digital assets.
