U.S. stocks finished a turbulent session higher on Wednesday after Trump administration officials said they would meet with Chi🍌nese counterparts this weekend, boosting hopes for an imminent de-escalation of tensions between the world's two largest economies.

Nearly three-quarters of the stocks in the S&Pജ 500 rose on Wednesday, extending a weekslong ascent spurred by optimism about incoming trade deals. 

The Treasury Department and Office of the U.S. Trade Representative each announced late Tuesday that their respective leaders, 澳洲幸运5官方开奖结果体彩网:Scott Bessent and Jamieson Greer, would 澳洲幸运5官方开奖结果体彩网:meet with Chinese officials during a trip to Switzerland starting Thursday. Treasury Secretary Bessent says the meetings will take place on Saturday and Sunday. 

Stocks H🙈ave Re🧜bounded on More Than Just Hope, Deutsche Bank Says

The plans add to trade optimism that has propelled stock gains in recent weeks. The S&P 500 notched its 澳洲幸运5官方开奖结果体彩网:longest winning streak since 2004 last week when 澳洲幸运5官方开奖结果体彩网:strong earnings reports and hints at coming U.S.-China talks reviv🐼ed Wall Street’s ri๊sk appetite. The rally erased all the S&P 500’s post-“Liberation Day” losses.

“It’s fair to say there’s plenty of suspicion at how quickly various assets have rebounded” from April's sell-off, conceded Deutsche Bank analysts in a note on Tuesday. “But there are several examples from recent history where unloved rallies carried on for some time,” including the months after 2020’s COVID sell-off and the 2023-24 bull market, during which 澳洲幸运5官方开奖结果体彩网:recession fears loomed over markets.

They note optimism about de-escalation with China is just one of several factors driving stocks’ recent gains. 澳洲幸运5官方开奖结果体彩网:Resilient economic data has boosted confidence that tariffs won’t cause a recession, and 澳洲幸运5官方开奖结果体彩网:falling oil prices have eased inflation and given the Federal Reserve more latitude to cut interest rates. (The Fed, which concluded its two-day policy meeting on Wednesday, 澳洲幸运5官方开奖结果体彩网:left interest rates unchanged and is seen continuing to do that at least until July, according to data from CME Group.)

Will 'De-Escalation' Be Enough for Wall Street?

Morgan Stanley analysts in a note on Monday argued the U.S. and China will 澳洲幸运5官方开奖结果体彩网:need to reach a trade deal “in ꦺthe next couple of weeks” for stocks to maintain their momentum and rℱetake their all-time highs. 

Bessent, though, says the coming negotiations are unlikely to result in a comprehensive deal. “My sense is that this will be about de-escalation, not about the big trade deal,” Bessent told Fox News on Tuesday.

Nonetheless, given the stakes, any de-escalation could be enough to fuel further stock gains. The S&P 500's companies get an estimated 7% of their annual revenue, or $1.2 trillion, from China, according to an analysis by Torsten Slok, chief economist at Apollo Global Management. A U.S.-China “decoupling” would decimate that revenue and lead to “a significant decline in earnings,” Slok says. 

Bessent on Tuesday said the White House isn’t interested in halting 澳洲幸运5官方开奖结果体彩网:trade with China. “We 𝕴don’t want to decouple," he said. "What ♔we want is fair trade.”

This story has been updated to reflect the market close.