US-China Tariff Rollback Fuels Market Rally
The stock market is responding favorably to a faster-than-expected reduction in tariffs between the US and China.
An initial 90-day tariff pause provided a boost, resulting in an increase in major indexes, including the S&P 500 and Nasdaq Composite.
Impact on Tariff Rates
The effective US tariff rate has decreased significantly, nearly returning to pre-"Liberation Day" levels.
Expert Analysis
JPMorgan's economist, Michael Feroli, had anticipated a smaller tariff decrease. However, the actual reduction was sufficient to prompt him to withdraw a prior US recession forecast, viewing the rollback as a substantial tax cut for consumers.
Goldman Sachs also revised its S&P 500 target upwards, citing the tariff reduction as a major contributing factor.
