U.S. and global stock markets rallied on Wednesday, May 7, 2025, driven by renewed optimism over U.S.-China trade relations and China’s latest monetary easing measures.

🔹 Market Highlights

• U.S. Stock Futures: Futures for major U.S. indices, including the S&P 500, Dow Jones Industrial Average, and Nasdaq 100, rose approximately 1% late Tuesday, buoyed by the announcement of upcoming trade talks between the U.S. and China.

• Chinese Markets: Chinese stocks also experienced gains, with the Shanghai Composite and Shenzhen Component indices rising, as investors welcomed the People’s Bank of China’s (PBOC) decision to cut key interest rates to support economic growth amid escalating trade tensions.

🤝 U.S.-China Trade Talks

The U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with China’s Vice Premier He Lifeng in Geneva this weekend. This meeting marks the first formal engagement between the two nations since the escalation of their trade war, with discussions expected to focus on de-escalation strategies and potential tariff reductions.