Why US-China tariff agreement isn’t super bullish for stocks

The bulls are back on Wall Street, with good reason. The US and China have agreed to ratchet down the tariff war for 90 days as each economy begins to feel the pressure of bruising penalties. After a weekend of meetings in Switzerland, the US will take reciprocal tariffs on China down to 10% from 125%. A separate tariff imposed by President Trump over what he says is China’s role in the fentanyl trade will stay intact. China will cut its retaliatory tariffs on US goods to 10% from 125%. Stocks soared on the news, the US dollar caught a strong bid, and defensive plays such as gold sold off. Investors will now be looking for two things to keep the bullish vibes going: first, that the two economic superpowers signal there is an opportunity to take tariffs down even further after the 90-day pause; and second, that the tariffs aren’t hammering the US economy. Yahoo Finance Executive Editor Brian Sozzi spoke with eToro global markets analyst Lale Akoner on Opening Bid for perspective on whether stocks will be back for the rest of the year or if this is just a headfake. Akoner also discusses top picks in what is now a significantly changed backdrop for investors. Yahoo Finance's Opening Bid, brings you a high-octane take on the freshest analyst calls, wildest stock moves and shrewdest commentary in the business world. Executive Editor Brian Sozzi puts Wall Street's finest through their paces in this essential conversation for every investor - before the stock market opens. Find this episode's transcripts and more episodes of Opening Bid at http://finance.yahoo.com/videos/series/opening-bid/. Thoughts? Questions? Fan mail? Email us at yfpodcasts@yahooinc.com. Yahoo Finance's Opening Bid is hosted by Brian Sozzi, and produced by Langston Sessoms Learn more about your ad choices. Visit megaphone.fm/adchoices