U.S.–China Trade Talks Fuel Global Stock Market Rally

On May 2, 2025 the world’s stock markets went up a lot because people became hopeful about U.S.–China trade talks. Investors were happy after China said it was willing to talk about trade again but only if the U.S. looks at its tariffs (taxes on imports). This news came at a time when markets were having trouble because of political issues and problems with supply chains.

In the U.S. the S&P 500 went up by 1.2%. In Europe the Stoxx 600 increased by 1.8%, and Germany’s DAX index jumped by 2.5%. This showed that people were feeling more confident about the economy. Markets in Asia also went up with the Shanghai Composite and Nikkei 225 both rising. Experts think this could help lower the tension between the U.S. and China the two largest economies in the world.

China’s Ministry of Commerce said that talks should be based on “mutual respect” and fairness. U.S. officials said the talks would focus on fair trade, protecting intellectual property and reviewing tariffs. Even though the White House has not confirmed an official meeting early talks are already happening.

This news also helped the prices of commodities and tech stocks especially those in businesses that rely on global trade. Many companies around the world hope that the easing of tensions will help them export more and reduce inflation. But experts warn that the market rise is still based on hope not solid results.

With President Trump’s 90-day suspension of tariffs ending in July both the U.S. and China are under pressure to make a deal soon. Economists say this is a key moment to bring stability and improve global trade. As talks continue everyone is waiting for real progress in the next few weeks.