Stocks Soar as U.S.-China Trade Tensions Ease
On Monday, the Dow jones Industrial Average climbed over 1,100 points. The S&P 500 and Nasdaq Composite also saw meaningful gains, rising 3.25% and 4.34% respectively.The Russell 2000 index climbed 3.56%. Tech and retail stocks, especially those with ties to China, led the rally.Tesla, Apple, and Amazon saw their shares jump by 7%, 6%, and 8%.
Key tech and retail companies like Dell and Best Buy performed well. This surge came after successful trade talks in Geneva. U.S. tariffs on Chinese goods were reduced to 30% from 145%. China lowered its tariffs on U.S. imports to 10%. Treasury Secretary Scott Bessent praised the “productive” discussions. He hinted at more talks soon.
President Trump celebrated the deal as a “reset” for trade relations.
Though, Bitcoin faced a setback.It dropped 2.75% to $100,771,retreating from its earlier peak of nearly $106,000. The cryptocurrency is now trading around $101,900. The decline came as traders sold off after the positive news, a common market behavior known as “selling the news.”
Bitcoin’s retreat suggests its recent gains might slow as other markets, like stocks, catch up. The temporary tariff suspension eased global trade worries but also prompted some investors to lock in profits. This move could signal a shift in focus from Bitcoin to other assets.
Despite the tariff rollback, the U.S. Treasury reported an extra $7.6 billion in duties last month,showing the trade disruption’s impact. The 90-day tariff suspension aims to pave the way for a broader deal. The U.S. and China will continue talks in the coming weeks, with the next round of discussions expected soon. The deal is a positive step,but the 20% tariff on fentanyl-related goods remains. The U.S. Treasury collected $7.6 billion more in duties, highlighting the trade disruption’s scale. The Dow is now down just 0.32% as 2025 began, while the Nasdaq is still down over 3%. The deal is a “total reset” for trade relations, according to President Trump. The 90-day rollback gives both sides time to negotiate a more comprehensive agreement.
