Wall Street Soars on US-China Tariff Truce
US stocks roared higher on Monday after the US and China agreed to temporarily slash tariffs, easing fears of a prolonged trade war and possible recession.
The S&P 500 jumped 3.2% and the Nasdaq 100 soared 4%, while the Dow Jones surged 1,160 points. Treasury Secretary Scott Bessent called the weekend negotiations in Switzerland “very productive,” confirming both sides would cut tariffs, the US to 30% and China to 10%, for 90 days.
Consumer discretionary was by far the top performing sector, adding about 5.5% while consumer staples and utilities underperformed. Tech also booked strong gains, namely Apple (6.3%), Nvidia (5.4%), Amazon (8.1%), Meta (7.9%), Alphabet (3.4%), and Tesla (6.7%).
On the other hand, pharmaceutical stocks were lower after Trump said he would sign an executive order to cut prescription drug prices. Traders will closely watch inflation data later this week for signs of how the new tariff regime could affect prices..
Source : Trading Economics
