Bloomberg News Now May 12, 2025: Equities Bolstered on US-China Deal, GOP Tax Bill Details, More
May 13, 2025
Discover how a truce in the U.S.-China trade war sparked a rally in equity markets, boosting the S&P 500 and NASDAQ. The discussion also covers the implications of new tax cut proposals by Republicans on federal spending and state tax regulations. Additionally, dive into the complexities of recent geopolitical events in the Middle East, including Hamas's hostage release and the potential challenges facing U.S.-Israel relations amid new deals with Iran.
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US-China Tariff Truce Spurs Rally
- Temporary tariff reductions between the U.S. and China helped spark a significant equity market rally.
- Despite tariff pauses, many tariffs remain in place, and trade talks will continue amid complexity.
Fed Rate Cuts and CPI Uncertainty
- Markets recalibrated Fed rate cut expectations to only two cuts this year following tariff announcements.
- Potential CPI impacts from tariffs are uncertain and seen as a wildcard by strategists.
GOP Tax Bill’s Big Ambitions
- A new GOP tax bill aims for $4 trillion in tax cuts and $1.5 trillion spending reductions over a decade.
- Raising the SALT cap to $30,000 is designed as a pay-for, but it faces political opposition.