Hang Seng Index: Markets React to China Tariffs as Services PMI Signals Weakness

US Markets Advance on Trade Developments and Earnings

On February 4, US equity markets reversed losses from Monday as investors considered tariff developments and corporate earnings. The Nasdaq Composite Index rallied 1.35%, while the Dow and S&P 500 rose 0.30% and 0.72%, respectively.

Canada and Mexico’s response to US President Trump’s tariffs and swift suspension of tariffs eased fears of sweeping US tariffs. Trump’s moves suggest a strategic effort to prevent a full-blown trade war with key partners, raising the chances of progress in US-China negotiations. The gains came despite China’s retaliation, with markets considering the response as measured.