Global Stocks Surge 5%+ as U.S. Eases Trade Tensions

Global stock markets experienced a significant surge, driven by optimistic expectations of easing trade tensions. The U.S. President expressed that the current tariffs on imports from China are too high and are expected to be significantly reduced. This statement, along with the assurance that the Federal Reserve Chairman would not be dismissed, alleviated market concerns and brought bullish funds back into the stock market.

The U.S. Treasury Secretary also mentioned that over 100 countries have reached out regarding the tariff measures announced by the U.S. President. The administration aims to collaborate with the IMF and the World Bank, emphasizing that the "America First" policy does not imply isolationism. The U.S. continues to maintain a strong dollar policy.

Following the U.S. market opening, Chinese assets saw a broad-based rally. The Nasdaq Golden Dragon China Index surged by over 5% at one point, with gains remaining above 4.4% at the time of reporting. ETFs such as the triple-leveraged FTSE China ETF and the double-leveraged China Internet ETF both rose by over 7%, while the China Overseas Internet ETF gained over 4%.

Among the notable Chinese stocks, Pony.ai surged by over 23%, while Xpeng, Ninebot, and TAL Education rose by over 8%. Tiger Brokers, Hey Tea, and Futu Holdings increased by over 6%, and Alibaba, Pinduoduo, iQIYI, and Beike all gained over 5%. Tencent Music and Vipshop rose by over 4%.

The three major U.S. stock indices also saw substantial gains. The Nasdaq Composite Index rose by 4.25%, the S&P 500 Index by 3.25%, and the Dow Jones Industrial Average by 2.75%. Major U.S. tech stocks staged a comeback, with Tesla surging by over 8%, Amazon by 7%, and Meta by over 5%. NVIDIA, Broadcom, and Taiwan Semiconductor Manufacturing Company (TSMC) ADR all rose by over 4%, while Apple, Microsoft, and Google gained by over 3%.

European stocks also saw a sharp rise, with the French CAC 40 Index up by 3%, the German DAX Index by 3.47%, and the Euro Stoxx 50 Index by 3.14%.

The U.S. President also mentioned that the Federal Reserve should lower interest rates. The U.S. Treasury Secretary, in a closed-door meeting with investors, stated that the tariff stalemate is unsustainable and expects a easing of the situation in the near future. This statement significantly eased market concerns, with bullish funds returning to the market.

Goldman Sachs CEO David Solomon recently stated that the U.S. administration should start reaching trade agreements and demonstrate their effectiveness to investors, which would benefit the U.S. stock market. Solomon emphasized that financial markets often overreact in the short term as investors need time to digest macroeconomic changes, such as the so-called "reciprocal tariffs."

Investors are concerned about the degree and speed of uncertainty, with Solomon noting that the current macro environment is vastly different from a few months ago. He highlighted that the lack of policy clarity has had a significant impact on asset prices and market dynamics. Solomon has previously warned about the increased risk of a U.S. economic recession due to trade war uncertainties and the lack of clarity among U.S. corporate CEOs.