The post US-China Trade War: Stock & Crypto Markets Show Divergence appeared on BitcoinEthereumNews.com.

The US stock and crypto markets are showcasing a diverging trend amid possible trade war discussions between the US and China. Notably, the price of the S&P 500 stock market has dropped on the daily chart. In contrast, top cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), are experiencing a bullish revival. The US-China Trade Talk Outlook Numerous reports have suggested that the US and Chinese officials are set to start talks this week to try to de-escalate the ongoing trade war. US Treasury Secretary Scott Bessent revealed plans to talk with Chinese Vice Premier He Lifeng during his visit to Switzerland from May 9 to 12. Image Source: Scott Bessent on X The main objective of this meeting is to establish the conditions for a potential settlement. Since tariff escalation kicked off in March, the trade talks would be the first in-person meeting between Chinese and American officials. Upon returning to the White House, US President Donald Trump imposed new import taxes of up to 145% on Chinese goods. In response, Beijing had imposed 125% levies on some goods from the US. The punishing tariffs have already damaged both economies, leading to a dramatic trade drop between the two countries. Therefore, many see the de-escalation of the trade war as a welcome sign for businesses and consumers in both countries and around the globe. However, optimistic sentiments for a potential settlement are gradually fading. Treasury Secretary Bessent noted that trade talks with China are not “advanced.” S&P 500, Dow Jones, and Nasdaq React This statement resulted in the stock market trading in the red zone during today’s trading session peak. The value of the S&P 500 fell sharply by over 2% within the past 24 hours to $5,604. Similarly, the Dow Jones Industrial Average fell 2.2%, while the…

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Filed under: News - @ May 8, 2025 11:27 am