Investors have responded with cautious optimism to the announcement of “substantial progress” in U.S.-China trade negotiations held in Geneva over the weekend. U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer indicated that the talks aimed at reducing the U.S. trade deficit concluded positively, though specific details of any agreement were not disclosed.

Market analysts view this development as a constructive step toward improving U.S.-China trade relations. Eric Kuby, Chief Investment Officer at North Star Investment Management, described the outcome as a positive middle ground, suggesting that while it may not trigger a significant market rally, it also avoids negative market reactions. Gennadiy Goldberg, Head of U.S. Rates Strategy at TD Securities, noted that markets are tentatively encouraged but await concrete details to fully assess the deal’s impact, warning of possible disappointment if the deal lacks substance. Jamie Cox from Harris Financial Group expects the positive language to boost markets, although presidential interpretation could still influence sentiment. David Wagner of Aptus Capital Advisors believes the positive sentiment will support ongoing market recovery, though much of the optimism may already be reflected in current pricing.

While the announcement has provided a boost to investor sentiment, experts caution that the lack of specific details may temper enthusiasm. The true impact on markets will depend on the concrete terms of any finalized agreement.

Source: Reuters