Investors are cautiously optimistic that U.S.-China trade talks may ease tensions between the world’s two largest economies, though they do not expect immediate breakthroughs. The meeting in Switzerland marks a significant development since U.S. President Donald Trump initiated sweeping tariffs on April 2, causing global trade uncertainty and market volatility. Trump mentioned “great progress” in negotiations without providing specifics. Market participants remain skeptical about rapid resolutions, focusing instead on avoiding further escalation. Trade tensions escalated last month when the U.S. increased tariffs on Chinese imports to 145%, prompting China to raise levies on U.S. goods to 125%. Despite these challenges, recent comments by Trump suggesting an 80% tariff on Chinese goods have sparked some hope for progress. The S&P 500 remains down about 8% from its February peak, reflecting ongoing concerns. Investors are watching for modest signs of progress, as significant disagreements could lead to further market volatility. — new from Reuters
