U.S.-China Trade Truce Boosts Stock Markets

A recent agreement between the U.S. and China to pause elevated tariff rates for 90 days has sent stock markets soaring. Tesla emerged as a significant beneficiary, with its stock climbing nearly 6.5% due to its extensive operations in China.

The pause alleviates supply chain concerns for the electric vehicle manufacturer. Meanwhile, the Detroit Big 3 automakers—General Motors, Ford, and Stellantis—also experienced a surge in share prices, particularly Stellantis, which is heavily impacted by import tariffs.

Despite this positive momentum, uncertainty looms over future trade negotiations. Analysts remain cautious about Tesla's high valuation, although its growth potential in autonomous driving and robotics is noteworthy.

In contrast, Apple faces challenges from tariffs affecting its iPhone production in China. As investors digest this news, all eyes will be on upcoming inflation data that could influence market dynamics.