Dow jumps nearly 1,000 and S&P 500 climbs 2.6% following a 90-day truce in the US-China trade war

Published: Monday, May 12, 2025 at 2:48 pm

**US Stocks Soar After US-China Trade War Truce**

Wall Street experienced a significant surge on Monday, fueled by a 90-day truce in the ongoing US-China trade war. The Dow Jones Industrial Average jumped nearly 1,000 points (2.3%), and the S&P 500 climbed 2.6%, bringing it closer to its all-time high. This positive market reaction followed an agreement between the United States and China to temporarily halt the imposition of tariffs, a move that had raised concerns about a potential recession and supply chain disruptions.

The truce, reached after negotiations in Geneva, Switzerland, will see both countries reduce tariffs on each other's goods. The US will lower tariffs on Chinese goods, while China will reduce its tariffs on US products. This temporary agreement provides a window for further negotiations between the two economic giants.

The positive sentiment extended beyond stocks. Crude oil prices rose, the dollar strengthened against other currencies, and Treasury yields increased, reflecting expectations that the Federal Reserve might not need to aggressively cut interest rates. Several sectors, including apparel, travel, and retail, saw substantial gains. Companies like Lululemon, Nike, Carnival, and Best Buy experienced significant stock price increases. International markets also reacted positively, with indexes rising across Europe and Asia. Notably, India and Pakistan also saw market gains following a truce in their military conflict.

BNN's Perspective: While the market's enthusiasm is understandable, it's crucial to remember that this is a temporary truce. The underlying issues in the US-China trade relationship remain unresolved. The 90-day period provides an opportunity for progress, but the potential for renewed trade tensions and market volatility persists. A balanced approach is needed, acknowledging the positive impact of the truce while remaining cautious about the long-term implications.

Keywords: US stocks, Dow Jones, S&P 500, trade war, US-China, tariffs, recession, market, economy, China, United States, truce, stocks, Lululemon, Nike, Carnival, Best Buy, Federal Reserve, interest rates, global economy, international markets, India, Pakistan, Geneva, Switzerland, Wall Street, stock market, trading, financial news

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