U.S. and China Ease Tariffs, Boosting Stock Markets
On Monday, the U.S. and China agreed to a 90-day pause on punitive tariffs. This move has significantly reduced tariff rates,making trade more manageable. The news sent a wave of optimism through the stock markets.
The Dow Jones soared by 1,078 points, reaching 42,300. The S&P 500 climbed 174 points to 5,834. The tech-heavy Nasdaq saw the biggest gain, up 754 points to 18,683. These increases reflect the positive sentiment following the tariff news.
President Trump announced the tariff pause, wich lowers the rate on Chinese goods from 145% to 30%. This includes a 10% base rate and an additional 20% due to China’s involvement in the fentanyl trade. Chinese tariffs on U.S.goods will be set at 10%.
trump called the talks a “total reset” in U.S.-China trade relations. while not a long-term solution, it signals progress in trade negotiations. Trump may also speak with Chinese President Xi Jinping this week.
Companies with strong ties to China saw important gains. Amazon rose 8.01%, Apple 6.39%, Tesla 6.48%, and Nvidia 5.12%. These stocks contributed to the dollar’s recovery, with the dollar index up 1.59%.
interestingly, Bitcoin and gold fell after the tariff news. BTC dropped 1.43% to $102,583, while gold fell 3.10% to $3,223.26 per ounce.this drop challenges Bitcoin’s role as an inflation hedge.
