US stocks bounced back in full-force Monday morning after the White House and China agreed to slash rates for 90 days in a drastic easing of trade tensions between the world’s largest economies.
US stocks surged Monday morning after the White House and China agreed to slash rates for 90 days in what could be a pivotal thawing of trade tensions between the world’s largest economies.
The Dow Jones Industrial Average jumped 1,044 points, or 2.5%, while the S&P 500 and Nasdaq soared 2.9% and 4%, respectively.
Treasury Secretary Scott Bessent on Monday said talks with China over the weekend in Switzerland had been “very productive,” and announced the two countries had agreed to lower tariff rates by 115% for 90 days.
That brings the US tariffs on Chinese goods down to 30%, and the Chinese tariffs on US imports down to 10%.
A separate 20% tax on Chinese imports that President Trump attributed to the nation’s involvement in fentanyl smuggling will remain in place.
Bessent also gave investors hope for a long-term trade agreement in the near future.
