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Stocks Rally On Biden's Tariff Comment – ValueWalk

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US stocks are rallying over optimism that President Biden could be positioning for a major de-escalation in the US-China trade war and over selling exhaustion.
Stocks rally on Biden’s tariff comment, Euro rallies on Lagarde Hawkishness, Oil choppy, Gold rallies, Bitcoin struggles
US stocks are rallying over optimism that President Biden could be positioning for a major de-escalation in the US-China trade war and over selling exhaustion. After eight weeks of selling pressure for the Dow and a seven-week losing streak for both the S&P 500 and Nasdaq, a rebound was long overdue. Many are rationalizing today’s rebound with the logic that much more downside would only be warranted if a recession was likely to happen early next year and that won’t be determined for a few more months. Q1 2022 hedge fund letters, conferences and more
A weaker dollar also gave a strong boost to risky assets as the ECB seems poised to raise rates in July. The immediate reaction to ECB President Lagarde’s comment that the central bank is likely to exit negative rates by the end of the third quarter put a massive bid into the euro. Bund futures popped and currency traders quickly abandoned the king dollar trade that has worked so well recently.

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