U.S.-China Trade Deal Framework a Bullish Sign for Stocks: Ives
Sunday’s news from administration officials that the U.S. was on track for a trade deal with China, after negotiators hammered out a framework for one over the weekend, is a bullish sign for the markets and tech stocks in particular, according to Wedbush tech analyst Dan Ives.
After weeks of (mostly) escalating tit-or-tat between the two sides, Treasury Secretary Scott Bessent’s announcement and the prospect for more progress “would be a huge groundbreaking moment for the tech sector and markets,” Ives said in a note Sunday. “This continues to be a lingering overhang on tech stocks that could be removed as the far reaching impact around the AI Revolution from chip production, Nvidia/AMD sales into China, software IP complexity, TikTok, and rare earth restrictions are all on the table.”
The real test will come Thursday, when President Trump is slated to meet with China’s President Xi Jinping while attending a conference in South Korea. Ives said a more comprehensive trade pact between the U.S. and China “would be a gamechanger for the AI Revolution thesis.”