Wall Street Sees 'Nothing of Real Substance' in Trump's China Trade Deal - Stocks Selling Off Globally

💡 Investors are selling off stocks globally due to lack of substance in Trump's China trade deal.

The Federal Reserve delivered a hawkish surprise on Wednesday, signaling that interest rate cuts remain further away than markets had hoped. Fed Chair Jerome Powell told reporters that the central bank needs "greater confidence" that inflation is sustainably declining before it will consider easing policy.

The 10-year Treasury yield surged to 4.8% in the aftermath, its highest level since October 2023. $TLT fell sharply as bond traders repriced the timing of the first cut from March to June.

Stocks Selling Off Globally

Investors are selling off stocks globally due to concerns over the lack of substance in Trump's China trade deal, which was announced on Wednesday. The deal, which aims to reduce trade tensions between the US and China, has been met with skepticism by Wall Street analysts.

Global Markets React

$SPY, the S&P 500 ETF, fell by 1.5%, while $NVDA, the NVIDIA stock, dropped by 3.2%. The sell-off was driven by concerns over the impact of the trade deal on global economic growth.

Investor Sentiment

Investor sentiment has turned negative in the wake of the deal, with many investors questioning the deal's ability to address the underlying issues driving trade tensions between the US and China.

What It Means for Investors