China's Finance Ministry just did something that's music to Trump's ears.
And it was music to the ears of investors across the U.S. financial market as well.
China's Finance Ministry announced it will exempt 16 different U.S. products that were initially tariffed in July 2018 from current tariffs.
Not only is this indicative of a potential trade deal down the road, but China's conciliatory stance makes the White House's stance far more likely to be similar in nature.
U.S. stocks had rallied for a hot second last week as Trump said he and Xi Jinping will met in October.
The market is now incrementally more optimistic there will be a trade deal at some point.
The S&P 500 rose as much as 0.13% Wednesday and is up 19% year-to-date now.
The other two major U.S indices also rose.
Meanwhile, the 10-year treasury yield didn't move much.
Some of the rallies of the past few weeks have been seen as classically "risk-on," with the 10-year treasury now yielding above 1.7%, up from 1.55% previously, as money had flown out of the safer asset and into stocks.
But even with hopes that the economic drag of the trade war can be much removed in the future, the 10-year treasury stayed put at around 1.75%.
Investors still expect more than one Federal Reserve interest rate cut in 2019, as the probability of a 2020 recession is still higher than it was several months ago.
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