12.05.202520:02:03UTC+00Wall Street Soars on US-China Tariff Truce

U.S. stocks experienced a significant surge on Monday following an agreement between the United States and China to temporarily reduce tariffs, alleviating concerns of an extended trade conflict and potential economic downturn. The S&P 500 saw an impressive rise of 3.2%, while the Nasdaq 100 climbed 4%, and the Dow Jones Industrial Average leaped by 1,160 points. Treasury Secretary Scott Bessent described the weekend's negotiations in Switzerland as "very productive," confirming that both nations would reduce tariffs—30% for the U.S. and 10% for China—over a 90-day period. The consumer discretionary sector stood out as the leading performer, with a notable increase of around 5.5%, while consumer staples and utilities lagged behind. The technology sector also recorded robust gains, with significant increases in companies such as Apple (6.3%), Nvidia (5.4%), Amazon (8.1%), Meta (7.9%), Alphabet (3.4%), and Tesla (6.7%). Conversely, pharmaceutical stocks faced declines following President Trump's announcement of an impending executive order to lower prescription drug prices. Investors are now closely monitoring inflation data scheduled for release later this week to assess the potential impact of this new tariff arrangement on consumer prices.