The markets get some relief that is needed with the two countries start negotiating with Trump on the definitions
New York (AP) – Some relief flows through financial markets all over the world on Tuesday as stocks bounce to a few of themHistorical lossessincePresident Donald TrumpSignificantlyRiskHe hasTrade warLast week.
S&P 500 increased by 3.7 % in morning trading, although it is still less than 14 %Register in February. Dow Jones Industrial Average increased 1,363 points, or 3.6 %, as of 10:12 am, Nasdaq was 4.2 % higher.
It was apostasyworldwide. The stock indicators increased by 6 % in Tokyo, 3.4 % in Paris and 1.6 % in Shanghai. The price of crude oil fell slightly higher after touching its lowest level since 2021 on Monday.
BitcoinIt was composed and more than $ 79,000 returned after a decrease of about 76,000 dollars the day before. There is no big change behind the step up, and analysts say moreSlaves up and downThe markets are likely to be not only in days but also the coming hours.
The big question is still focused on the period that Trump will keep on his harsh tariff in other countries, which will lead to raising prices for American shoppers and slow economy. If they continue for a long time, economists and investors expect to stagnate. But if Trump reduces them through negotiations at a relative speed, the worst scenario can be avoided.
Hope for Wall Street is still that negotiations may be possible, and Trump said on Monday that it had reached “the limits and possibility of a great deal for both countries” after talking to the South Korean President, Acting.
“Their top team is on a plane heading to the United States, and things look good,” Trump said on social media. “We are similarly dealing with many other countries, and they all want a deal with the United States.”
Japanese stocks led global markets after the country’s Prime Minister, Chiger Ishiba, appointed his commercial negotiations to talks with the United States. Japanese officials said it was based on an agreement between Ishiba and Trump.
Of course, other countries take a more aggressive assistant. China said it will achieve“Fight to the end”He warned against counter -measures after Trump on Monday threatened to raise his definitions more in the second largest economy in the world.
But such a rebound for global markets on Tuesday may not be a surprise. Do not go in one direction forever, and some of the best days in the history of the market have been collected around some of their worst days.
The largest gain for the S&P 500 since World War II was 11.6 % on October 13, 2008, for example. It was in the depths of the great recession, when the fears were high that the financial system was collapsing and that the S& P 500 was in the midst of approximately 57 % of its peak in late 2007 to its bottom in March 2009.
This is one of the reasons that many financial advisors indicate not to try the market time and sell stocks and other long -term investments when they are tense, due to the risk of losing these huge days.
Some republican voices criticize more collective tariffs of the White House, which can affect Trump’s thinking. Senator John Kennedy, a Republican Louisiana, said he supports the goals of the president of better trade deals, but worried about economic uncertainty, for example.
“We don’t know whether the drug will be worse than the disease,” Kennedy said, adding: “This is the economy of President Trump now.”
It follows mixed messages from Trump on Monday. “If we can hold a fair and good deal for the United States,” he said. Trump also added that both the settlement could be negotiating with other countries and permanent tariffs.
Trump’s trade war is an attack on the globalization that formed the global economy and helped reduce prices, but has also left manufacturing functions for other countries. He said he wanted to restore factory jobs to the United States, a process that may take years. Trump also says he wants to narrow the trade deficit with other countries.
At Wall Street, health insurance companies helped to lead the market after the Medicare & Medicaid services centers announced the strongest than expectedIncrease in the payment of medical care featureFor the next year. Humana jumped by 12.5 %, the United Health increased by 7.8 % and increased 5.2 %.
Levi Strauss increased by 2.8 % after reporting the profit for the last quarter, which topped analysts’ expectations. It also gave strong expectations for 2025 despite the continuous trade and definition war threats.
In the bond market, cabinet revenues have increased for the second consecutive day to restore more severe losses since the previous months. The return on the cabinet increased for 10 years to 4.24 % from 4.15 % late Monday and only 4.01 % late Friday.
The return tends to rise with the expectations of the power of the American economy and inflation. ___ The authors of the business contributed to Matt Out and Elin Cortbach.
This story was originally shown on Fortune.com
