U.S. futures rose after progress in trade talks with China, as officials hailed productive negotiations; however, crypto prices dipped amid lack of substantial detail. Bitcoin fell 0.6%, and Ether saw a 2.9% decline. China’s consumer prices continued to show weakness, ringing alarm bells for economic health.
U.S. stock futures saw a rise Sunday evening, following the White House’s announcement that significant strides had been made in trade negotiations with China. Dow futures increased by 1.3%, while the S&P 500 and Nasdaq 100 futures climbed 1.4% and 1.6% respectively. The positive sentiment came after Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer described their recent two-day talks in Switzerland as both “productive” and “constructive.”
Bessent remarked, “We made substantial progress between the U.S. and China in the very important trade talks” during his Sunday statement, though details on the progress would be shared later. The discussions involved China’s vice premier and two vice ministers and were framed against the backdrop of a staggering $1.2 trillion U.S. trade deficit, which has been highlighted by President Trump as a “national emergency.”
The ongoing trade discussion is crucial as the U.S. maintains a hefty 145% tariff on many Chinese imports. In response, China has imposed duties on U.S. goods which can reach up to 125%. The restrictions were originally brought in due to issues surrounding trade imbalances and national security concerns, encompassing matters like the opioid crisis.
Despite the optimistic tones from U.S. officials this weekend, specific details on tariffs, enforcement mechanisms, and timelines remain absent, leaving financial markets somewhat unsettled. This lack of clarity particularly hit the crypto market hard, sending Bitcoin down by 0.6% to $103,900 and Ether retracing by 2.9% to $2,507.
Meanwhile, broader altcoins including Solana, Dogecoin, and XRP saw losses between 4% and 8%, as data from CoinGecko highlighted significant liquidations and ETF outflows. In a related piece of news, recent data released in China showed a 0.1% year-on-year decline in consumer prices for April, marking the third consecutive month of deflation and pointing towards sluggish domestic demand. This situation spurs expectations for further stimulus measures from the People’s Bank of China.
A detailed joint statement from the White House is expected on Monday, which should clarify the progress made during the weekend’s talks. Investors are likely looking for specifics on how trade relations will evolve moving forward, as that could significantly influence both stock and crypto markets alike.
