US-China made substantial headway in their trade conflict with phase 1 underway. The deal that was signed Wednesday afternoon would increase China’s spending of US goods & services by $200 billion over the next 2 years. In return, the US agreed to halve tariffs on $120 billion worth of Chinese goods.
The markets took this news with open arms as every major index hitting all-time highs. Today, Alphabet GOOGL became the third US company in US history to hit a $1 trillion market valuation.
Now the question we need to be asking is whether this deal is achievable or not. This deal will significantly increase spending on manufacturing goods, energy, services, and agriculture.
Uncertainty is still high for the tech space. There was no mention of this industry in the deal. The US’s blacklisting of Huawei has caused the Chinese to be stubborn on that front. Tech giants like Apple AAPL and Microsoft MSFT, as well as chipmakers like Broadcom AVGO and Micron MU, may be at risk.
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