US Stocks Rally on Potential US-China De-escalation

Treasury Secretary Bessent's remarks about the US-China trade situation injected optimism into the stock market. Bessent suggested the existing trade standoff, which he characterized as an embargo, is unsustainable and expects de-escalation. This spurred a rally in major indices, with NASDAQ and S&P 500 eyeing critical moving averages. Technically, the NASDAQ needs to breach its 50-hour and 100-hour moving averages to confirm a bullish bias, while the S&P 500 faces similar resistance levels. However, the setting of these comments—a closed-door JPMorgan event—highlights concerns about fairness in information dissemination, as such insights weren't immediately available to the broader market, creating a two-tiered system.

Comments from Treasury Secretary Bessent indicating a potential de-escalation of US-China trade tensions triggered the rally.

For NASDAQ, the 50-hour (16417.63) and 100-hour (16398.11) moving averages. For S&P 500, the 50-hour (5299.82) and 100-hour (5302.20) moving averages are critical resistance levels.

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