US-China Talks Spark Optimism; Betting Markets See Recession Odds Drop

Group 1 - The thawing of US-China trade relations has led to significant optimism on Wall Street, with stocks like Tesla, Alibaba, and Amazon experiencing gains [1][2][11] - Betting markets indicate a substantial decrease in the odds of a recession in 2025, dropping from 66% to 39% within two weeks [3][2] - The S&P 500 Index ETF opened 3% or higher on a Monday for the first time since November 2020, crossing back over its 200-day moving average, signaling a bullish long-term trend [4][11] Group 2 - The Cboe Volatility Index (VIX) has shown historical patterns where spikes above $45 are followed by significant gains in the S&P 500 Index, suggesting a potential bullish outlook [7][10] - The recent trade deals with the UK and China are expected to create a domino effect, leading to quicker and more frequent agreements, which may positively influence equity markets [10][11]