U.S.-China Tariff Agreement Strengthens Wall Street
Reuters
The three major Wall Street indexes surged sharply after the announcement of a 90-day tariff reduction agreement between the U.S. and China. The S&P 500 reached its highest levels since early March, boosting investor optimism.
Wall Street’s three major indexes rose sharply following the U.S.-China agreement to reduce tariffs for 90 days. The deal fueled hopes for easing the global trade war.
The S&P 500 gained 184.28 points (3.26%) to reach 5,844.19, marking its highest levels since early March. The Nasdaq Composite rose by 779.43 points (4.35%) to 18,708.34, while the Dow Jones Industrial Average climbed 1,160.72 points (2.81%) to 42,410.10.
On Monday, the U.S. and China announced they would reduce tariffs on each other’s goods for 90 days. The U.S. stated it would cut tariffs on Chinese imports from 145% to 30%, while China said it would reduce duties on U.S. imports from 125% to 10%.
Investors Turn to Riskier Assets
Investors began favoring riskier assets following the agreement, though they still await clarity on the final tariff arrangements. During this period, the dollar strengthened against the euro, and bond markets experienced a downturn.
Aleksandr Morris, CEO of F/M Investments, noted that while the positive trade news has eased investor concerns, the rising interest rates are fueling inflation fears. He highlighted that the 10-year bond yield is approaching 4.5%, a level the Trump administration worked hard to move away from in order to reduce mortgage costs for consumers.
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