Market Rebound
The stock market experienced a significant rally following a 90-day truce announcement in the -China trade war and an unexpected slowdown in inflation, with the and showing notable gains.
The , however, faced a downturn, primarily due to 's substantial stock drop after suspending its full-year financial forecast and announcing a CEO change.
Economic Insights and Future Outlook
Despite the positive market response, economists caution that inflation may rise in the coming months due to tariffs, leaving the Federal Reserve in a wait-and-see mode regarding interest rate adjustments.
The trade truce is expected to have a positive impact on the US economy, potentially adding 0.4 percentage points to its growth this year, though challenges remain in the ongoing negotiations.