Tensions and Hope: Crypto and Stock Markets React to Planned U.S.-China Trade Talks

The financial markets are heating up once again – not only due to developments in cryptocurrencies and equities but especially because of the upcoming meeting between U.S. and Chinese negotiators set to take place in Switzerland. This anticipated summit is stirring a mix of cautious optimism and heightened tension across the markets. Reactions were immediate – crypto is climbing, stock futures are rebounding, and investors are closely watching the U.S. Federal Reserve.

🔹 Bitcoin Targets $97,000, Crypto Market Tops $3 Trillion Bitcoin is currently holding above the $96,800 mark, signaling a continued bullish trend. Meanwhile, the total cryptocurrency market capitalization has surpassed $3 trillion once again, despite recent volatility. Technical indicators remain favorable – Bitcoin maintains key support at $91,000, which is well above its 100-day and 200-day moving averages. No signs of a deeper correction or bearish reversal are visible on the daily chart. Altcoins are also gaining, with some breaking out of long-standing downward wedge formations.

🔹 High-Stakes Zurich Talks: U.S. and China Back at the Table According to the Wall Street Journal, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with China’s top economic official on Thursday in Zurich. This news immediately lifted sentiment overnight and helped reverse losses from earlier sessions. Futures on the S&P 500 rose by 0.8%, the Dow Jones climbed by 196 points (+0.42%), and Nasdaq 100 futures increased by 0.48%. These gains come after Tuesday’s trading session saw declines across all major U.S. indexes, including a nearly 400-point drop in the Dow.

🔹 All Eyes on the Fed: Rates, Inflation, and Risk While international diplomacy takes center stage, the U.S. Federal Reserve has begun its two-day policy meeting. Markets expect interest rates to remain unchanged, but all eyes are on Chair Jerome Powell’s press conference, which could offer insight into the Fed’s stance on inflation and the economic risks posed by trade tensions. According to the CME FedWatch tool, there is a 97% probability that the Fed will hold rates steady.

🔹 Corporate America Braces for Tariffs Several American companies are already assessing the potential damage. Ford estimates that increased tariffs could cut one of its key profit indicators by as much as $1.5 billion. Surprisingly, Ford shares rose 2.7%, suggesting the market may have already priced in the risks. Mattel, the toy giant, saw its stock jump 2.8% after announcing plans to raise prices and shift production out of China to avoid a projected $270 million in tariffs.

🔹 Bond Market Attracts Record Demand The bond market also drew intense interest. A $42 billion auction of 10-year U.S. Treasury notes saw 91.1% purchased by indirect bidders – the highest share since February 2023. The yield on the 10-year note stabilized around 4.305% at the time of publication.

📌 Summary: 🔹 Crypto market rises – Bitcoin above $96,800, total cap over $3 trillion.

🔹 U.S. and China to hold key trade talks in Zurich.

🔹 Stock futures rebound after recent losses.

🔹 Fed keeps markets on edge over rates and inflation.

🔹 U.S. corporations adjust to tariff risks, bond auction sees record demand.

#CryptoMarket , #CryptoNewss , #TradeWars , #bitcoin , #TRUMP

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