Morning Juice – US Session Prep (12th May)

Sentiment
Investors rushed back into US assets, powering a more than 3% surge in S&P 500 futures, after China and the US agreed to cut tariffs and de-escalate a trade war that had sown turmoil in global markets. Treasuries and gold tumbled.

Risk appetite on Wall Street was reignited after Treasury Secretary Bessent hailed the trade discussions as “very robust and productive.”
US megacap tech stocks, which had been hard hit this year, were on track to tally some of the biggest gains, with Nasdaq 100 futures poised to re-enter a bull market. Nvidia, Amazon, Apple and Tesla all rose more than 5% in premarket trading.

The dollar topped a one-month high. Gold fell more than 3%. The 10- year Treasury yield climbed seven basis points to 4.45% as traders pushed back the timing of possible interest-rate cuts.

The breakthrough in the China-US talks delivers a shot of relief to investors who were bracing for the possibility that a spiraling trade war between the world’s biggest economic powers might cause a global recession.
The countries will lower tariffs on each other’s products for 90 days, according to a joint statement released in Geneva.

Under the temporary pause unveiled on Monday, the combined US levies will be reduced to 30%, while the 125% Chinese duties on American goods will drop to 10%. Bessent said that neither nation wants to “decouple,” and that talks might lead to “purchasing agreements” by China.

Docket
11:30 ET
US sells $76 bln 3-Month Bills
US sells $68 bln 6-Month Bills

Speakers
08:50 ET
BoE’s Mann speaks on a panel at the Bank of England Bank Watchers’ conference 2025 at King’s Business School ‘The neutral rate of interest’.

10:25 ET
Fed’s Kugler speaks on the economic outlook at the National Association for Business Economics and the Central Bank of Ireland’s International Economic Symposium in Dublin.
Text and Q&A are both expected.

17:00 ET
Trump at Saudi State visit

Good luck!