News about the United States reaching an agreement with China Temporarily simplify tariffs Stocks were sent on Monday.
The S&P 500 rose 184 points, or 3.3%, to 5,844, while the Dow Jones Industrial average scored 1,161 points, or 2.8%, to 42,410. Morning earnings helped the S&P 500 surface above April 2.
Nasdaq Composite rose 4.4%, providing a mitigation for retaliatory Chinese tariffs and export restrictions. Nvidia and Apple's shares rose 5.4% and 6.3% respectively.
In a joint statement issued by the White House on Monday, the United States and China announced on Monday that they would Significantly lower tariffs 90 days. The deal was reached in Switzerland over the weekend, with Treasury Secretary Scott Bessent and U.S. Trade Chief Jamieson Greer Meet with China Trade Mission.
According to the White House, tariffs in both countries will be reduced by 115% starting on May 14. This will reduce U.S. tariffs on Chinese imports from a height of up to 145% to 30%, while China's interest rate on U.S. goods from 125% to 10%. 10% of baseline tariffs and other U.S. measures will remain in place.
UBS's global wealth management program U.S. tariffs on Chinese imports will eventually settle about 30% to 40%.
"Now, investors will focus on the signs that temporary repairs can turn temporary repairs into durable agreements," Ulrike Hoffmann-Burchardi, chief investment officer at UBS Global Wealth Management, said in a research note.
The value of the dollar climbs over other major currencies, while crude oil prices rise by more than 3% In the afternoon trading. 10-year yield of the Ministry of Finance Also rose to 4.5%the highest is since April 11.
Investors cheer for the stock boom, but also warn that market rally could falter in the next three months as tariff pauses in the U.S. and China ended in August.
"This is the textbook recovery after the market waterfall drops," Gina Bolvin, president of Bolvin Wealth Management Group, said in an email to CBS MoneyWatch. "As we approach a 90-day mutual tariff deadline, expect volatility."
Still, the Trump administration has had success in reaching a deal with China (seemed as one of the more difficult agreements to negotiate), paving a smoother path for Wall Street investors.
USA Agree Last week in the UK, the first trade agreement to be announced since the so-called "liberation day." Mr. Trump put forward a 10% tariff benchmark on most imports on April 2, but it still exists.
"The market will have a way forward and the all-time high of the stock market is achievable," said Chris Zaccarelli, chief investment officer at Northlight Asset Management in a research note.
The news also eased concerns that tariffs could put the United States in a serious downturn. Oxford Economics has lowered its chances of a recession to 35% this year, citing a tariff truce. Despite this, they remained conservative.
"But, as we learned in the first trade war, we don't want to read too much," Ryan Sweet, chief economist at Oxford Economics, said in a study on Monday.
Retail, technology and travel companies have all made extensive gains, and news of lower tariffs has brought relief to companies like Apple, which rely on Chinese imports to stock name-branded products.
Amazon, which one Prices have risen Hundreds of commodities due to tariffs Up 8%. According to a survey conducted by Jungle Scout, more than 70% of the products sold in China are produced in China.
The tourism industry has also increased, with Delta and American Airlines soaring more than 5% by the end of the trading day. Carnival cruise companies rose 9.6%, while Norway cruises soared 8.2%.
The biggest revenue includes clothing and footwear companies, whose production is usually located in China and elsewhere in Asia. Lululemon skipped 8.7%, while Nike rose 7.3%.