The American stocks recovered suddenly after the United States and China agreed on the temporary reduction of customs after negotiations during the weekend in Switzerland, which prompted hope that the trade war would not push the economy in the recession.
Dow Jones Industrial Average increased by 1136 points, or 2.7%, remaining close to its highest levels of most session, and enthusiasm for purchase remained strong. The S & P 500 increased by 3%, thus reaching more than 20% at the peaking of pessimism around the customs. The reference index reduced its losses from the beginning of the year to only 0.9%.
Nasdaq Composite added 4%, because the initial agreement with China sent technological shares related to that country – like Tesla and Apple – in a higher flight.
Finance Minister Scott Bessent said on Monday that interviews with China were “very productive” and that both countries agreed on the temporary reduction in customs. US tariffs in Chinese goods were reduced to 30%, and Chinese tariffs on American imports were reduced to 10%. Bessent told CNBC’s “Squawk Box” on Monday to expect a re-meeting with representatives of Beijing in “In the next few weeks” in order to begin to negotiate a greater agreement.
Tesla jumped by 7%, while Apple and Nvidia received 6% and 5%. The shares of the companies that rely the most on the Chinese goods increased the most. Best Buy jumped by 6%, Dell Technologies for 8%, Amazon jumped by 8%.
“Markets are recovering because investors are surprised by the rapid progress of the Chinese Trade Tariff Agreement,” Jeff Kilburg from the KCM of Financial, reports SEEbiz.
Tensions between China and the United States reached the highlight in April after President Donald Trump increased Tariffs China to 145%. Beijing then returned his own customs from 125% aimed at American goods. S & P 500 almost closed last month at the Bear Market – with a fall of almost 20% compared to the record recorded in February – after the announcement of the “Day of Liberation”. The shares were then recovered after Trump reduced additional “reciprocal” interest rates for most countries outside China during the 90-day break.
