Stock markets and the dollar cautiously react to new U.S.-China trade talk developments. Investors remain wary as they await inflation data and a critical Treasury auction.
Stocks rallied significantly on Friday as President Trump announced upcoming US-China trade talks. The Dow climbed by 448 points amid hopes for resolution in the tariff wars, fueled by a positive jobs report.
The 30-year Treasury yields have remained above 5% since May 21, causing concern among investors. This rise in yields coincides with the passing of a significant budget bill by the House of Representatives.
US Treasuries saw significant gains after the Federal Reserve reassured markets about the potential for lower interest rates, pushing 10-year note yields down to 4.2%. Traders are betting on continued rate reductions.
