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Stocks, Dollar Rise on US-China Trade Optimism Despite Lack of Concrete Details

Date: 12-may-2025 | By: Nuztrend Team

Stocks, Dollar Rise on US-China Trade Optimism Despite Lack of Concrete Details

Financial markets surged on May 12, 2025, following signs of renewed cooperation between the United States and China. Stock indexes and the U.S. dollar climbed on hopes of a breakthrough in trade relations, even though detailed agreements remain elusive, according to Reuters.

The S&P 500 and Nasdaq futures both jumped over 1%, while the dollar strengthened against the Japanese yen and other safe-haven currencies. Investors responded to comments from officials that the weekend talks in Geneva were “productive” and laid the groundwork for further negotiations.

Officials Signal Progress, But No Specific Tariff Cuts Yet

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer described the discussions as “a positive step,” though they offered no specific details about tariff reductions or trade concessions. Chinese Vice Premier He Lifeng called the talks “an important first step,” signaling willingness to continue dialogue in the coming weeks.

Both nations agreed to establish a bilateral consultation mechanism to keep economic communications open and avoid abrupt policy shifts that could disrupt global supply chains.

Analysts Urge Caution as Market Volatility Lingers

While markets welcomed the renewed dialogue, analysts remain cautious. “This rally is driven more by sentiment than substance,” said Julia Choi, senior market strategist at EastBridge Financial. “Without concrete deliverables like tariff cuts or tech trade agreements, the momentum could fade quickly.”

Investors and economists alike are awaiting the release of a joint statement expected later this week, which may include more specifics on what was discussed and what steps might follow.

Global Impact and Investor Response

  • The U.S. dollar index rose 0.8%, its best single-day gain in a month.
  • European and Asian markets also posted modest gains, reflecting global relief at de-escalation.
  • Technology and manufacturing sectors led the charge, driven by hopes of relaxed export regulations.

With both economic giants signaling a desire to work toward resolution, traders are hopeful—but not yet convinced—that a new chapter in U.S.-China trade relations is underway.

What's Next?

The next round of formal trade negotiations is expected in late May. Until then, markets will remain highly sensitive to updates from both governments.

As the world watches closely, investors are advised to remain cautious, diversify portfolios, and prepare for further volatility should negotiations stall or disappoint.

Disclaimer: This article is based on publicly available information from various online sources. We do not claim absolute accuracy or completeness. Readers are advised to cross-check facts independently before forming conclusions.

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