Wall Street Breakfast Markets react as U.S., China call tariff timeout
May 12, 2025
The latest developments in U.S.-China trade have led to a 90-day tariff pause, sparking market optimism. Amazon-backed Scale AI is eyeing expansion in Saudi Arabia. President Trump's bold plan promises to slash U.S. drug prices by up to 80%. Market reactions are intense, especially in pharmaceuticals and tech, as global price standards shift. Plus, a look at notable stock movements, including the 'Magnificent Seven' and trends in oil and cryptocurrency adds extra intrigue.
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U.S.-China Tariff Pause
- The U.S. and China agreed to temporarily suspend most tariffs and substantially reduce tariff rates.
- Lowered tariffs aim to ease trade tensions and boost market confidence, reflected in rising futures.
Scale AI's Middle East Expansion
- Scale AI, backed by Amazon, plans to expand with new offices in Saudi Arabia and the UAE by year's end.
- This move signals growth in AI adoption and investment in the Middle East.
Trump Targets Drug Prices
- Trump announced an executive order targeting up to 80% cuts in U.S. prescription drug prices.
- The policy matches U.S. prices to the lowest prices paid globally, aiming to reduce healthcare costs significantly.