Wall Street Calm as White House Prepares 10 Trade Deals

Wall Street has experienced a period of relative calm despite recent volatility driven by geopolitical tensions and tariff announcements by President Trump. The S&P 500, Nasdaq, and FTSE 100 have all posted modest gains and are nearing their all-time highs. Investors were encouraged by statements from U.S. Commerce Secretary Howard Lutnick, who announced that the White House is prepared to sign off on a slate of deals with key partners before the end of Trump’s 90-day pause.

Lutnick revealed that the White House has a pipeline of 10 deals ready to be signed, with preliminary frameworks already in place with the U.K. and China. He explained that these deals will serve as blueprints for other agreements, with countries being categorized based on their progress in negotiations. Those who do not have a deal by the end of the 90-day pause will be placed into their “proper buckets” and will face set tariff rates.

Speculation is rife about which countries will be next in line for these agreements, with Japan and India being strong contenders. Lutnick confirmed that a deal has been signed with China, which includes the delivery of rare earths to the U.S. in exchange for the removal of countermeasures. However, analysts remain skeptical about the significance of this agreement, viewing it as a codification of previous agreements made in Geneva and London.

Despite the positive news, analysts caution that this period of calm may merely be the “eye of the storm.” There is still significant uncertainty surrounding the upcoming tariff deadline and potential geopolitical tensions. Economists had been nervously eyeing the possibility of Iran shutting the Strait of Hormuz, which could have sent global oil prices spiraling. However, this fear has receded, with the chances of such an event occurring put at just 4% by some analysts.

Deutsche Bank’s Jim Reid warned that the current calm may be temporary, with the potential for renewed uncertainty around tariffs and other geopolitical issues. He also noted that President Trump’s potential early intervention into naming the next Fed chairman is generating expectations for lower borrowing costs in the future. Whether this period of calm will prove to be yet another false dawn remains to be seen.