Optimism returns to the stock markets? The specter of a full-scale trade war is remote

Thanks to hopes for a thaw in the trade war with China, good financial results of the largest companies and the electoral victory of the ruling party in Argentina, “good vibrations” have returned to the stock exchanges, the Wall Street Journal commented on Tuesday.

The New York newspaper, but also other media, assesses the return to growth on the stock market this week after uncertainty and concerns related to tariffs imposed by President Donald Trump and the problems of small banks and lending companies.

After the quotations of all three major indices (Dow Jones, S&P500 and NASDAQ) on Wall Street reached another record high, these results were improved again on Tuesday. According to the Wall Street Journal, it is above all the result of the preliminary agreement on the framework of the trade agreement between the US and China announced on Monday before Thursday's meeting of the leaders of major powers in South Korea. Finance Minister Scott Bessent announced the US withdrawal from the threat of imposing an additional 100 percent. tariffs on goods from China, in return for which Beijing will delay for a year the introduction of restrictions on the export of minerals critical to the entire world.

The effect of the announcement was also visible on Asian stock exchanges: records were also recorded on the stock exchanges in Tokyo, Seoul and Taipei, while the Shanghai index was at its highest level in 10 years.

In addition to averting the specter of a full-scale trade war between the world powers, “WSJ” also points to the unexpectedly good financial results of the largest companies for the third quarter, as well as the electoral victory of President Javier Milei's party in Argentina.

Similar factors are also indicated by, among others, CNBC television, which notes that of the S&P 500 companies that announced their quarterly results, as many as 83 percent recorded profits higher than expected. In addition, there is also hope for further cuts in interest rates by the Federal Reserve, which will announce its decision on Wednesday.

“Another solid batch of financial reports, signs of easing inflation pressure, rising expectations for interest rate cuts and confirmation of a meeting between US and Chinese leaders Donald Trump and Xi Jinping later in the week strengthened buying pressure,” Adam Turnquist, chief strategist at brokerage firm LPL Financial, summed up in a note, quoted by CNBC.

From Washington Oskar Górzyński (PAP)

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