Dow soars 1,000 points after the U.S. and China trade deal sparks optimism across markets, boosting investor confidence and global equities
The S&P 500 and Nasdaq opened higher, while the Dow Jones Industrial Average rose by over 1,000 points due to a significant market reaction to the news of a trade agreement between the United States and China.
As buyers were encouraged by the most recent sentiment, global equities experienced a significant increase after experiencing significant fluctuations in response to the tariff uncertainty.
The Dow surged by more than 1,000 points as investors responded to the U.S.-China agreement.
The Nasdaq, which is characterized by its emphasis on technology, experienced a 4% increase, while the S&P 500 experienced a 2.8% increase. Following a weekend of highly anticipated discussions between trade officials from the United States and China, jitters dissipated, and Asian and European stock markets also increased.
On Monday, the White House stated the agreement, and U.S. Treasury Secretary Scott Bessent also provided additional commentary in a CNBC interview. The global trade powers have reached an agreement to reduce reciprocal tariffs temporarily.
In particular, the United States will reduce tariffs on most Chinese imports from a peak of 145% to 30%. In the interim, China will reduce its tariffs on U.S. products from 125% to 10%.
U.S. Treasury Secretary Scott Bessent said at a news conference:
“We have reached an agreement on a 90-day pause and substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%,”
The agreement implies that Wall Street could prolong the gains observed last week, which were triggered by President Donald Trump’s announcement of a trade agreement between the United States and the United Kingdom.
The broad market began the week positively, in addition to equities. Oil prices and Treasury yields increased in tandem with the U.S. dollar. Bitcoin also experienced a surge, surpassing $105,000. Gold experienced a 3.2% decline, settling at approximately $3,236 per ounce.
The dissipation of tariff anxiety is expected to stimulate additional gains. The Consumer Price Index is scheduled for release on Tuesday, and traders will also be interested in any new inflation data. On Thursday, May 15, the Producer Price Index and U.S. retail sales will be released.
This week, Walmart (WMT), Sony (SONY), and Alibaba (BABA) are all scheduled to release quarterly results, which will attract investor attention in the earnings news.
