The US markets celebrated confirmation of a preliminary agreement between Washington and Beijing on Monday concerning the future of Tiktok. Oracle, a favorite for the acquisition of the Chinese platform, jumped by more than 3% while the S&P 500 crossed for the first time the symbolic threshold of the 6,600 points.
In short
- The Oracle action has climbed more than 4 % in session after the announcement of a framework agreement on Tiktok.
- The S&P 500 closed above 6,600 points for the first time in its history.
- The secretary of the Treasury Scott Bessent confirms the existence of a “framework for a tiktok agreement”.
- Trump and Xi Jinping will support each other on Friday to finalize the terms.
Bytedance summoned to sell Tiktok, oracle in good position
Oracle is now the favorite to take Tiktok in the United States. Monday morning, the group's action jumped after Donald Trump said on Truth Social that an agreement had been concluded with a certain business, transparent allusion to the Chinese platform.
Negotiations, carried out in Madrid between American and Chinese delegations, led to a framework agreement confirmed by the secretary of the Treasury, Scott Bessent.
This announcement has boosted the title Oracle, already up 81 % since the start of the year thanks to solid forecasts in the cloud. The Larry Ellison group indeed benefits from a decisive asset: it has been hosting the American data from Tiktok since 2020 via the “Texas Project”.
This existing infrastructure gives it one step ahead of other contenders, whether it is Microsoft, consortium led by Frank McCourt or even more unexpected figures like Mr. Beast.
The geopolitical dimension further increases the pressure. Bytedance, Tiktok's parent company, must imperatively yield its American activities before September 17, under penalty of a total ban on the application.
According to Bessent, Washington crossed a course by making Beijing understand that he was ready to go to a final closure, a lever that made it possible to unlock the discussions.
The S&P 500 is a new historic record
THE S&P 500 increased by 0.5 % Monday, crossing for the first time the symbolic threshold of the 6,600 points, while the Nasdaq Composite signed a sixth consecutive record with a gain of 0.9 %.
These performances reflect the optimism of the markets, fueled both by the advances in the Sino-American commercial negotiations and by the expectations around the next decision of the Federal Reserve.
Among the flagship values, Tesla distinguished herself with a flight of 7 % after Elon Musk announced the purchase of a billion dollars in shares in her own business.
This operation, the most important ever carried out by the boss of Tesla on the free market, was interpreted as a strong signal of confidence in the future of the group, which now puts on robotics beyond electric vehicles.
Between the current, Nvidia fell 1.8 % after the opening of a survey of Chinese regulators for possible violations of antitrust laws. This reverse illustrates the persistent fragility of technological relations between Washington and Beijing, even while a preliminary agreement on Tiktok suggests a relative relaxation.
Investors also scrutinize the Fed meeting, which ends on Wednesday. The slowdown in the job market and moderate inflation strengthen anticipations of a drop in interest rates. According to the Fedwatch tool of the CME, the probability of a flexibility of a quarter of a point reaches 96 %.
The flight of Oracle, combined with the record of the S&P 500, thus symbolizes the enthusiasm of a market where political, geopolitical and finance are closely mixed. In this balance game, Oracle seems to benefit from the best momentum for the moment.
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