Markets Soar as US–Saudi Trade Deal Ignites Risk Rally; Crypto Outperforms
Global markets rallied sharply on Tuesday following the announcement of a groundbreaking $600 billion trade agreement between the United States and Saudi Arabia, according to QCP.
The landmark deal, which includes a rollback of key tariffs, triggered a fresh wave of risk-on sentiment, revitalizing equities and pushing crypto markets toward new highs.
Wall Street Recovers from Correction
The S&P 500, which had been down as much as 17% at its April lows, has now fully erased those losses and sits flat on the year. The turnaround underscores investors’ renewed appetite for risk as trade tensions ease. With the “Art of the Deal” playbook seemingly back in motion, investor confidence is on the rise.
Cooling CPI Fuels Rate Cut Optimism — Cautiously
On the macroeconomic front, US Consumer Price Index (CPI) data surprised to the downside, offering some relief on inflation concerns. While this has led to renewed optimism for interest rate cuts, the Federal Reserve remains measured. At its latest meeting, the Fed reiterated a data-dependent approach, citing uncertainty around how tariff changes could ripple through inflation and employment figures.
Markets had previously priced in four rate cuts for 2025, but that has now been pared down to two, with the first likely to come no earlier than September—a more realistic timeline in QCP’s view compared to earlier bets on a July move.
Crypto Leads the Charge
Among asset classes, crypto has emerged as the strongest performer. Bitcoin (BTC) is nearing its all-time highs, while Ethereum (ETH) is closing the gap.
The sector is also drawing attention ahead of a major milestone: Coinbase’s upcoming inclusion into the S&P 500 on May 19. QCP notes that such index inclusions often serve as short-term catalysts, as passive funds realign their portfolios to reflect new benchmark constituents.
Outlook: More Room to Run
With macro conditions improving and structural drivers in play, QCP believes digital assets have room to rally further. As index flows build and broader risk sentiment strengthens, both traditional and digital markets could be set for a dynamic summer.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
