Closing Bell Closing Bell Overtime: U.S.-China Deescalation Boosts Stocks; NEC Director Kevin Hassett On Deal Talks 5/12/25
May 12, 2025
Kevin Hassett, former director of the National Economic Council, dives into the nuances of U.S.-China trade negotiations, shedding light on how they influence market dynamics. He discusses budget talks and President Trump's executive order aimed at lowering drug prices. The conversation explores the rally in major stock indices spurred by optimism over trade, particularly spotlighting the booming semiconductor sector. Hassett provides insights on how geopolitical tensions and legislative changes impact investor sentiment and stock performances.
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Tariff Pause Sparks Market Rally
- The U.S.-China 90-day tariff pause sparked a strong stock market rally, especially in tech and consumer sectors.
- This deal signals a potential reboot in trade relations with less uncertainty ahead.
Lighten Up on Rally
- Investors should use the recent market surge as an opportunity to lighten up on some positions.
- Focus on "fallen angels" and tech giants as they likely continue leading the market to new highs.
Geopolitics Affect Trade Deals
- The tariff rollback is positive for China but limited in economic impact.
- Other countries, especially Europe, might be left out or suffer as the U.S. focuses primarily on China.