On the eve of the US-China trade talks, US stocks opened up on May 9, 2025, with all three major indexes rising.

Taiwan • Business • 05/09 15:03
On the eve of the US-China trade talks, US stocks opened up on May 9, 2025, with all three major indexes rising.

On May 9, 2025, high-level trade talks between the US and China are set to begin in Geneva, Switzerland, causing US stock markets to rise at the opening. The Dow Jones Industrial Average rose 37.0 points to 41,405.48, the S&P 500 increased 15.7 points to 5,679.65, and the Nasdaq Composite went up 94.4 points to 18,022.549. Anticipation of eased trade tensions drove the stock market upward.

Key Updates

05/12 02:59

Former President Trump is optimistic about the future of the U.S. economy and urges investors to buy stocks, taking advantage of trade agreement opportunities.

On May 9, 2025, former U.S. President Trump announced a trade agreement with the United Kingdom, stating that the U.S. economy would "soar like a rocket," urging investors to buy stocks. His promoted "Magnificent and Lavish Act" includes tax cuts, energy deregulation measures, and debt ceiling adjustments. Despite the market's impact from tariff policies, Trump's optimistic attitude and policy initiatives offer investors a fresh perspective.

05/12 01:54

In April 2025, the US stock market experienced a technical rebound: Retail investors drove the S&P 500 up by 14%, and corporate buyback plans attracted market attention.

Since April 2025, the U.S. stock market has rebounded, with the S&P 500 index rising 14% in April alone and the Nasdaq index rebounding 15%. This surge was led by retail investors collectively buying technology stocks and options, leading to a short squeeze. U.S. companies announced buyback plans totaling $233.8 billion, the second highest level since 1984, bringing the total buybacks for the year to $665.1 billion. Structural changes in the market and Federal Reserve policies have become key focal points, with growth stocks and defensive stocks showing divergent performances, reflecting the contradictions and uncertainties in investor sentiment.

05/11 10:57

The easing of the U.S. labor market and the shift in AI chip policy are boosting tech stocks, with the technology and healthcare sectors of the S&P 500 leading the gains.

In May 2025, the U.S. labor market showed signs of easing, inflationary pressures persisted, and service sector activities rebounded. The Trump administration plans to lift AI chip export restrictions imposed during the Biden era, boosting tech stocks like Nvidia and AMD. Earnings reports from S&P 500 companies were impressive, with technology and healthcare sectors leading the gains. Nvidia plans to release a scaled-down version of the H20 chip in July to address export restrictions. The utilities sector showed steady performance due to AI-driven electricity demand, and small and mid-cap stocks gained market attention due to the "Made in America" reshoring policy.

05/10 05:59

Bank of America Chief Strategist Warns: U.S. Stock Market Rebound May Be Nearing Its End, with $24.8 Billion Withdrawn Over the Past Four Weeks, Recommends Shifting to Bonds and International Stocks as a Hedge

Michael Hartnett, Chief Investment Strategist at Bank of America, warns that the rebound in U.S. stocks might be coming to an end, as there has been a net outflow of $24.8 billion from the U.S. stock market over the past four weeks, marking the largest outflow in two years. Hartnett suggests that investors consider moving to bonds and international stocks by 2025 to address the risks of slowing U.S. economic growth, uncertainty in trade policies, and potential asset price adjustments.

05/09 23:01

On the eve of US-China trade talks, market volatility: the Dow fell more than 100 points, Affirm's strong earnings report receives a stock upgrade.

The U.S. stock market's major indices ended the day with mixed results on Friday, with the Dow Jones Industrial Average falling 119 points due to market unease over the upcoming U.S.-China trade talks in Switzerland. The U.S. and U.K. have reached a preliminary trade agreement and may potentially lower tariffs on Chinese goods. Affirm stood out as a stock after being upgraded by investment firms due to its better-than-expected earnings.

05/09 15:03

On the eve of the US-China trade talks, US stocks opened up on May 9, 2025, with all three major indexes rising.

On May 9, 2025, high-level trade talks between the US and China are set to begin in Geneva, Switzerland, causing US stock markets to rise at the opening. The Dow Jones Industrial Average rose 37.0 points to 41,405.48, the S&P 500 increased 15.7 points to 5,679.65, and the Nasdaq Composite went up 94.4 points to 18,022.549. Anticipation of eased trade tensions drove the stock market upward.

05/09 13:30

Five Key Things to Know Before the U.S. Stock Market Opens on May 9, 2025: U.S.-U.K. Trade Agreement, Corporate Earnings Reports, and Other Key Factors

On May 9, 2025, U.S. stock market investors are focused on the U.S.-UK trade agreement, U.S.-China trade negotiations, corporate earnings, and economic data. U.S. stock futures rose following the U.S.-UK trade agreement; U.S.-China trade negotiations will be held in Geneva, with tariff policies being the focal point; Pinterest's earnings report was strong, while Expedia's stock price dropped due to weak travel demand; U.S. retail sales rose by 1.5% in April, and the Producer Price Index (PPI) fell by 0.4%; Bitcoin broke through the $100,000 mark, and the escalating military conflict between India and Pakistan has heightened concerns over geopolitical risks.

05/09 11:04

President Donald Trump pushes for a new tax reform bill: expects economic growth and criticizes the Federal Reserve for its slow policy

On May 9, 2025, U.S. President Trump promoted a new tax reform bill, with plans to increase taxes on high-income earners to finance tax cuts for the middle and working classes, continuing the policies of his first term. Trump referred to this bill as a "big and beautiful bill," anticipating it will stimulate economic growth and urged investors to invest in U.S. stocks. He criticized Federal Reserve Chairman Powell for failing to lower interest rates promptly, calling his actions sluggish and detrimental to the coordination of economic policies.

05/09 03:09

Palantir rises to the top ten US tech companies: Market value reaches $2,810 billion, driven by government contracts and the US-UK trade agreement.

On May 8, 2025, Palantir Technologies (NASDAQ: PLTR) experienced a 7.85% increase in its stock price, closing at $119.15 per share, with its market capitalization reaching $281 billion, making it the tenth-largest tech company in the United States, surpassing Salesforce. The stock price increase was driven by strong financial results, an upward revision of the annual forecast, the US-UK trade agreement, and support from government contracts. The market expressed concerns about its price-to-earnings ratio of 520, reflecting both high expectations and potential risks associated with its valuation.

05/09 03:09

May 9, 2025, U.S. stock futures fall in early trading: The three major indices all fall, market sentiment retreats

On May 9, 2025, futures for the three major U.S. stock indices were down across the board in early trading. At 8:31 AM Taipei time, Dow Jones Industrial Average futures fell 114 points to 41,354, S&P 500 futures dropped 13 points to 5,671.5, and Nasdaq 100 futures fell 42.25 points to 20,105.75. This pullback contrasts with the previous day's gains, indicating profit-taking following a brief period of optimism, as investors wait for more economic data and policy signals.

US-China Trade Talks to Take Place, Market Sentiment is Cautiously Optimistic

The United States and China are scheduled to hold high-level trade talks in Geneva, Switzerland, this weekend, marking the first formal meeting since trade tensions between the two escalated. According to Bloomberg, the US government is considering significantly reducing tariffs on Chinese goods from the current rate of 145% to below 60% as an initial step to ease tensions. Informed sources indicate that this proposal is not yet finalized, but if negotiations progress smoothly, related measures could be implemented as early as next week.

The talks will be attended by US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while the Chinese side will be led by Vice Premier He Lifeng. The two sides are expected to discuss issues such as tariffs, rare earth export restrictions, and fentanyl. Although the talks are generally seen as exploratory and unlikely to result in immediate concrete agreements, their symbolic importance and potential policy shifts are receiving significant market attention.

The Three Major Indices Opened Higher, Investors React Positively

Against this backdrop, the three major US stock indices opened higher on Friday. According to the Central News Agency, the Dow Jones Industrial Average rose 37.0 points or 0.09% to open at 41,405.48 points; the S&P 500 Index rose 15.7 points or 0.28% to open at 5,679.65 points; and the Nasdaq Composite Index rose 94.4 points or 0.53% to open at 18,022.549 points.

This upward trend continued the optimistic sentiment from the previous trading day. Earlier, US President Trump announced a trade agreement with the UK and stated on social media that "several trade agreements are on the verge of being finalized," further boosting market confidence. Although Trump also mentioned that an 80% tariff on Chinese goods "seems reasonable," the market interpreted this as a strategic statement before negotiations, which did not exert significant pressure on the stock market.

International Markets are Strengthening in Tandem, Capital Flows Back into Risk Assets

In addition to the progress in US-China talks, the overall international market atmosphere is also leaning positive. Major European stock markets rose in unison, with Germany's DAX index performing well. In Asia, the MSCI Asia Pacific Index rose 0.7%, poised to close higher for the fourth consecutive week. Oil prices rose, with Brent crude surpassing $63 per barrel, while the US 10-year Treasury yield slightly declined to 4.37%, indicating that capital is flowing back into risk assets.

Regarding corporate earnings, several tech and consumer stocks performed well, further supporting market sentiment. For example, companies like Lyft, Pinterest, and CloudFlare saw significant pre-market stock price increases due to better-than-expected earnings reports. TSMC ADR also rose 2.43% to $179.48 per share, reflecting its record-high revenue in April.

Market Focuses on Progress in Negotiations and Policy Signals

Despite the positive opening of the US stock market, the market remains cautious. Analysts point out that whether the talks can pave the way for subsequent negotiations will be a key focus. According to Radio France Internationale, China has emphasized it will not compromise on its core interests and demands that the US fully lift tariffs. Eurasia Group analyst Wang Dan noted that China positions this meeting as initiated by the US, indicating that Beijing holds a certain advantage in the negotiations.

Additionally, China has also been actively strengthening its economic and trade relations with Southeast Asia and Europe recently as an alternative strategy to reduce reliance on US trade. Although it cannot completely replace the US market in the short term, this move provides China with more room for maneuver in the negotiations.

References

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