One more clearly palpable proof that all those tariff-driven dips on Wall Street were nothing else than splendid buying opportunities. Our analyst team proclaimed a great time to buy throughout the whole month of April often and loudly so that your ears probably became stuffed with our bullish estimates. But now the fairness of these predictions is finally confirmed as a fact. The uptrend in global stocks has already resumed slowly but steadily, with some newly emerged details about the Sino-U.S. trade deal breakthrough generously slathering of icing on this cake after the weekend.

The general terms of behind-the-scenes talks between Washington and Beijing have ultimately come to light, and the U.S.-U.K. agreement was actually concluded just a few days ago. This had an immediate impact, so that the tech-heavy Nasdaq Composite index closed on Monday, May 12, with a 4.35% of daily gains, while the broader market S&P 500 barometer added 3.26% within 24 hours to climb more than 1,000 points higher compared to its early April lows, approaching to 5,850 after plunging to nearly 4,800 just a few weeks ago. The performance of individual megacaps looked even more convincing. The e-commerce platform and cloud capacity provider Amazon (AMZN) soared by 8.07%, the owner of Facebook and Instagram Meta Platforms grew by 7.92%, with the electric car flagship Tesla (TSLA) adding 6.75% only this Monday. The iPhone maker Apple (APPL), which is heavily dependent on assembly in China, recovered by 6.31%, and dominant AI chip manufacturer NVIDIA (NVDA) bounced by another 5.44%.

When it comes to specifics, basically everyone probably read the news that the two great nations, the U.S. and China, said in a rare joint statement on their moving to cut Donald Trump’s so-called "reciprocal" import tariffs on China goods from impossible 145%, effectively amounted to a trade embargo, to quite normal 10%, even though his first term's 20% tariff related to Beijing’s alleged role in the flow of the illegal drug fentanyl remains in force. Meanwhile, China's levies on U.S. imports are being cut from a recent spike to as high as 125% to 10%. More negotiations are surely planned, while both sides may conduct working-level consultations on relevant economic and trade issues, the countries said. The U.S. Treasury Secretary Scott Bessent commented during a news conference that there is now a "good mechanism" to avoid any further ratcheting up in tensions but the main thing is that "neither side wanted a decoupling". Jamieson Greer, the U.S. trade representative who was also present at the discussions, said that the differences between the two nations were not as significant as previously assumed, being confident that "the deal we struck with our Chinese partners will help us to work toward resolving" on the trade deficit issue.

It is clear that the voice of the Chinese side is still heard weaker than the boasts of officials from Trump's team, but there is no doubt that there will be words of response from Beijing as well. China will probably have to agree to buy more goods like soybeans or heating oil from America to improve the trade balance disgrace, and also agree on how to legally purchase proper chips for AI, as well as tighten controls on fentanyl smugglers. In the meantime, global suppliers are trying their best to get as much cargo from China as possible, while the 90-day trade truce is still in effect for sure, and so world trade has immediately picked up.

However, even if more precise agreements will be postponed or suspended for some time, and would become weaker than initially announced, so that the mutual tariff levels may be not as convenient as many expect after Bessette's words, for example, then this can only partially affect the rising trajectory of Wall Street assets, but not their final destination at more than 6,500 or even 6,850 points which is another 1,000 points higher than even current quotes. We also estimate the fundamental foundation of this skyward rush on Wall Street as even more solid in light of observations that even before the apparent clarification with trade deals, the rise continued unabated after a relatively hawkish stance of the U.S. Federal Reserve on May 7, which was unable to significantly curb the ascending sentiment.