TL;DR
U.S.-China 90-day tariff truce lifts Boeing ban; UnitedHealth drops 10%; S&P 500 target raised.
Highlights
- U.S. and China agree to a 90-day tariff truce: U.S. tariffs on Chinese goods drop to 30%, China cuts U.S. tariffs to 10%; sectoral tariffs on autos, steel, and others remain 1.
- U.S. reduces "de minimis" tariff on small China shipments to 54% from 120% for 90 days, impacting e-commerce firms like Shein and Temu 2.
- China lifts ban on Boeing deliveries; up to 50 aircraft shipments to resume immediately 3.
- UnitedHealth drops 10% pre-market after withdrawing 2025 outlook and CEO change; medical cost trends worsen 4.
- Goldman Sachs cuts U.S. recession odds to 35%, raises S&P 500 target to 6,500; expects only one Fed rate cut in December 6.
- Pacific container shipping volumes and freight rates surge as companies rush to ship ahead of tariff reset 15.
- Honda projects a 70% profit decline for 2026, citing $4.4B U.S. tariff impact; delays Canada EV supply chain 5.
- Fund managers reduce U.S. dollar exposure to 2006 lows, per BofA survey; soft landing expectations rise 16.
- Robinhood to acquire WonderFi for C$250M to expand crypto presence in Canada 7.
- Curve Finance hit by DNS hijack; $3B TVL at risk but no smart contract breach reported 8.
- JD.com beats Q1 estimates (revenue +16%, EPS $1.16); warns on new U.S. de minimis tariff 10.
Commentary
The U.S.-China 90-day tariff truce is the primary macro event for U.S. traders today. The reduction in headline tariffs (U.S. to 30%, China to 10%) provides near-term relief for global supply chains and U.S. importers, with an immediate impact on shipping activity—Pacific freight rates are up sharply as firms expedite shipments ahead of the truce’s expiration 115. The partial rollback of "de minimis" tariffs gives e-commerce platforms like Shein and Temu a temporary reprieve, though the sector remains exposed to policy volatility 2. Boeing is a clear winner as China lifts its delivery ban, unlocking pending aircraft orders 3.
Equity sentiment is mixed pre-market. The trade deal and Goldman Sachs ’ S&P 500 target hike support risk, but UnitedHealth’s 10% drop after pulling guidance and a sudden CEO change weighs on the Dow and healthcare 46. The insurer’s warning on accelerating medical costs highlights ongoing sector-specific risks, even as macro headwinds ease. Industrial and trade-exposed names may see rotation as tariff relief boosts near-term outlooks, while auto and supply chain names like Honda remain pressured by unresolved sectoral tariffs and currency headwinds 5.
On the currency front, global fund managers are reducing U.S. dollar exposure to multi-year lows, reflecting increased optimism for a soft landing and improved global growth prospects 16. This could add incremental pressure to the dollar as capital reallocates. In crypto, Robinhood’s WonderFi acquisition signals continued institutional expansion, while the Curve Finance DNS hijack is a reminder of persistent operational risks in DeFi 78. JD.com ’s strong results underscore resilience in Chinese e-commerce, but management flagged caution on the new U.S. tariff regime 10.
Traders should monitor logistics and shipping for volume spikes, watch for volatility in managed care and auto sectors, and stay alert for any shifts in Fed rate expectations as macro conditions evolve 615.