By Graham Summers, MBA | Chief Market Strategist
Stocks are bouncing on announcements of Japan, India, the European Union and other nations looking to negotiate new trade deals with the United States (U.S.).
Some of the announcements hitting the wires…
News regarding negotiations with Japan:
European Union leader Ursula von der Leyen suggesting the EU could offer zero tariffs for industrial goods from America.
These announcements and others “put a floor” under stocks. The S&P 500 hit a low of 4,850 before consolidating for the remainder of the day.
Stocks are more than due for a relief rally here. The question is whether it’s simply a bounce or the beginning of something more.
The answer to that question lies in China. China has yet to signal a willingness to work with the U.S. on trade. Soon after President Trump announced reciprocal tariffs, China announced a series of retaliatory tariffs on U.S. goods.
This sent President Trump into a frenzy, posting on Truth Social that if China did not immediately reverse course, that he would be introducing tariffs of 50% on China starting tomorrow.
Are THE lows in for stocks? We’ll see, but the dust has yet to settle and until China and the U.S. come to terms, this could still get ugly again. Stay frosty!
On that note, we are putting together a special investment report designed to help investors navigate this new market environment. It’s titled The MAGA Portfolio and it will detail some of the investments that will win as Team Trump moves to restructure global trade.
Copies will be delivered to subscribers of our FREE daily market commentary Gains Pains & Capital. To join now and have your account in place so this report will be delivered to your inbox on Monday…
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
