Bloomberg Businessweek
Nasdaq 100 Enters Bull Market After US-China Truce
May 12, 2025
Nancy Lazar, Chief Economist at Piper Sandler, delves into U.S.-China trade dynamics and their global economic implications. Doug Ciocca, CEO of Kavar Capital Partners, analyzes market volatility and investment strategies amidst recent stock rallies. Former Washington State governor Jay Inslee discusses the surge in clean energy jobs and the intersection of climate initiatives with economic policies. Together, they explore how the truce between the U.S. and China could reshape markets and the impact on inflation expectations.
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Quick takeaways
- The US-China trade truce has significantly improved market sentiment, reducing recession fears and boosting major stock indices, especially the Nasdaq 100.
- The resurgence of manufacturing and the clean energy sector showcases a trend towards job creation and economic growth amidst regulatory challenges.
Deep dives
Impact of U.S.-China Relations on Economic Stability
A significant development in the U.S.-China economic relationship has been noted, with economists reducing the likelihood of a recession from 45% to 25%. This shift arises from factors beyond tariffs, such as emerging clarity on tax legislation and signs of deregulation, which are essential for supporting small and medium-sized businesses. The potential decrease in tariffs and the deregulating environment can provide cushioning to businesses grappling with trade uncertainties. Additionally, a manufacturing renaissance over the past 15 years suggests a growing trend towards onshoring, which could foster a more optimistic economic outlook for the latter part of the year.
