Wall Street only cares about the China tariff deal

The stock market has become desensitized to trade deal headlines, unless they involve China, according to market sources. The market has already priced in trade deals, with a 27% increase since April 8. The only potential threat to this growth is a negative development in the US-China trade relationship. Investors are advised to ignore tariff headlines unless they involve China, as they are seen as minor hiccups. The tariff rate on China is crucial due to the significant exposure of US companies to China as both a supplier and consumer. The S&P 500 revenue from China is $1.2 trillion, roughly four times the US trade deficit with China. The cost of goods sold has increased by over 15% from 2015 to 2019, partly due to tariffs, which can pressure profits and stock prices. The trade deal with Japan may serve as a framework for potential European and Chinese deals. Market sources expect volatility off tariff headlines, but any dips are seen as buyable opportunities, unless there is bad news about China. Overall, the market remains focused on the US-China trade relationship, which will drive future market movements.