U.S., China Reach Consensus, Stocks Dollar Rise Amid Trade Talks

Wall Street stock futures and the dollar strengthened on Monday amid optimism about progress in U.S.-China trade talks, raising hopes that a global recession might be averted despite limited concrete details. U.S. Treasury Secretary Scott Bessent described the talks as showing "substantial progress," while Chinese officials said an "important consensus" was reached and announced plans to launch a new economic dialogue forum. However, neither side mentioned specific tariff rate changes, though investors hope the White House may scale back the existing 145% tariff on Chinese goods. Analysts see the current framework as a foundation for further discussions rather than a finalized deal, with concerns about tariff rollbacks remaining unresolved. Additional geopolitical tensions seemed to ease, with a fragile ceasefire holding between India and Pakistan and Ukraine's President Zelenskyy preparing for talks with Russia. Market reactions included gains in major stock futures and a firmer yuan, reflecting cautious optimism over the trade developments.