FX.co ★ US Stocks Soar as US and China Lower Tariffs

On Monday, U.S. stock markets experienced a significant surge, with the S&P 500 and Nasdaq each climbing approximately 3%, and the Dow Jones advancing by over 1,000 points. This rise followed an announcement from the U.S. and China regarding a comprehensive 90-day reduction in tariffs after their trade discussions in Switzerland over the weekend. The U.S. plans to decrease tariffs on Chinese products from 145% to 30%, while China intends to reduce tariffs on American goods from 125% to 10%, both for the duration of 90 days. This development has bolstered investor confidence, indicating a serious commitment from both nations to ease trade tensions and prompting a shift towards more volatile investments. The consumer discretionary sector emerged as the top performer, increasing by about 5.5%, whereas consumer staples and utilities lagged behind. Large-cap stocks, particularly Apple (5.3%), Nvidia (4.5%), Amazon (8.3%), Meta (5%), Alphabet (3.4%), and Tesla (6%), posted significant gains. Meanwhile, pharmaceutical stocks declined following President Trump's announcement of a forthcoming executive order aimed at reducing prescription drug prices.