Following a tit-for-tat tariff battle between China and the US in which the US raised tariffs on Chinese products by up to 145% and China reciprocated by tariffs on US products with 125% tariffs, President Trump caved in and issued an exemption for Chinese tariffs on a list of electronic products including computers, smartphones, and chip-making equipment. The announcement was made yesterday morning and was followed by a major spike in stock market weekend futures.
Some traders may have also anticipated the statement on Friday evening before the market close with a recorded large options bet of $850,000 worth of $SPY 554 calls that expire on Monday submitted just 2 minutes before market closing time. Alexandria Ocasio Cortez is calling for an investigation into stock market trading by House members after suspicions were raised that insiders at the White House are leaking information in advance of major announcements that is then used by politicians to trade the stock market.
The new tariff reprieve on Chinese exports are intended to secure Chinese exports by US companies such as Apple and NVIDIA. Previously in a press conference, President Trump said that he wanted to strike a deal with China, and the US administration asked Chinese officials to request a phone call between President Xi Jinping and President Trump. So far there are no indications that this phone call was made.
Newsroom
Leave a Reply