Markets were buzzing with anticipation as U.S.-China trade talks kicked off in Switzerland last week, following Trump’s announcement of a fresh U.S.-UK trade deal—the first since his broad tariff moves in April. On Sunday, Trump added fuel to the fire, touting “major progress” in the China negotiations, raising hopes of a breakthrough that could ease global trade tensions and end concerns the trade war would trigger a global economic meltdown.
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The U.S.-UK trade agreement unveiled on Thursday had investors leaping for joy, with Trump himself cheering, “Buy stocks now!” As part of the deal, the U.S. will ease levies on British steel and autos, while the U.K. will open its markets to American farm products. Shares of major British firms, BAE Systems, AstraZeneca, and Rolls Royce, all rose on the deal news. The S&P 500 is clawing its way back, nearly hitting its pre-tariff “Liberation Day” levels from April 2.
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The UK deal isn’t exactly a game-changer on its own. It’s a modest pact, leaving the 10% baseline tariff on U.S. exports intact, which is a head-scratcher since the U.S. enjoys a trade surplus with Britain. U.S. automated felt the deal allowed too much foreign competition from the UK. If a U.S.-China deal lands, stocks could be off to the races, potentially smashing their February all-time highs.
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This coming week the economic calendar is packed: April’s consumer price index will shed light on inflation, and Fed Chair Powell’s upcoming remarks in Washington, D.C., are in focus after last week’s rate pause and stagflation warning. Earnings season also heats up with big names like Cisco (CSCO) and Walmart (WMT) reporting, alongside SEC filings that’ll reveal major hedge funds’ latest equity moves.

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