Wall Street opens with strong gains due to US-China trade truce
New York Stock Exchange building on Wall Street (United States). Credits: NYSE, via Facebook. Washington – The New York Stock Exchange opened this Monday with pronounced gains after the US and China announced the suspension for 90 days of most of the mutual tariffs, in a de-escalation of the trade war launched by Donald Trump. Around 1.50pm GMT, the Dow Jones was up by 2.47 percent, the Nasdaq index increased by 3.47 percent and the broad-based S&P 500 index advanced 2.62 percent. Investors “were expecting good news: they have received it”, noted Steve Sosnick, analyst at Interactive Brokers, in statements to AFP. Washington and Beijing announced on Monday the suspension for 90 days of most of the tariffs that had been mutually imposed, a de-escalation in their trade war that had shaken the global economy. This suspension will come into effect “before May 14”, announced the world’s two largest economic powers in a joint statement published after two days of negotiations in Geneva. The US tariffs on Chinese products, which were added to pre-existing tariffs and had reached 145 percent, will be reduced to 30 percent. China, which had responded to Washington with tariffs of 125 percent, will reduce them to 10 percent. “Objectively, it is still quite high, but it is certainly better than the initial situation,” said Sosnick. “The agreement constitutes a reasonable basis for the continuation of negotiations over the next three months,” highlighted David Morrison, analyst at FCA, in a note. According to Sosnick, this news “fits the current mood of the market, which tends to consider as positive any information that can be perceived as good news regarding the trade war” initiated by Trump. Last Thursday, Wall Street had been boosted by the announcement of a trade agreement between the US and the UK, the first since Trump’s tariff offensive. “The big tech capitalisations are driving the market,” analysts at Briefing.com noted. The semiconductor sector, particularly concerned about tensions between the world’s two largest economies, stood out on Monday, with strong gains for Nvidia (4.43 percent), Broadcom (4.61 percent) and AMD (6.12 percent). Chinese companies listed in New York also benefited. Alibaba rose 5.87 percent, as did its competitors PDD (7.41 percent), owner of Temu, and JD.com (5.43 percent). The only shadow was the pharmaceutical sector, affected by Trump’s announcement of a reduction in prices of prescription drugs in the US, between 30 percent and 80 percent.(AFP) This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
Washington – The New York Stock Exchange opened this Monday with pronounced gains after the US and China announced the suspension for 90 days of most of the mutual tariffs, in a de-escalation of the trade war launched by Donald Trump.
Around 1.50pm GMT, the Dow Jones was up by 2.47 percent, the Nasdaq index increased by 3.47 percent and the broad-based S&P 500 index advanced 2.62 percent.
Investors “were expecting good news: they have received it”, noted Steve Sosnick, analyst at Interactive Brokers, in statements to AFP.
Washington and Beijing announced on Monday the suspension for 90 days of most of the tariffs that had been mutually imposed, a de-escalation in their trade war that had shaken the global economy.
This suspension will come into effect “before May 14”, announced the world’s two largest economic powers in a joint statement published after two days of negotiations in Geneva.
The US tariffs on Chinese products, which were added to pre-existing tariffs and had reached 145 percent, will be reduced to 30 percent.
China, which had responded to Washington with tariffs of 125 percent, will reduce them to 10 percent.
“Objectively, it is still quite high, but it is certainly better than the initial situation,” said Sosnick.
“The agreement constitutes a reasonable basis for the continuation of negotiations over the next three months,” highlighted David Morrison, analyst at FCA, in a note.
According to Sosnick, this news “fits the current mood of the market, which tends to consider as positive any information that can be perceived as good news regarding the trade war” initiated by Trump.
Last Thursday, Wall Street had been boosted by the announcement of a trade agreement between the US and the UK, the first since Trump’s tariff offensive.
“The big tech capitalisations are driving the market,” analysts at Briefing.com noted.
The semiconductor sector, particularly concerned about tensions between the world’s two largest economies, stood out on Monday, with strong gains for Nvidia (4.43 percent), Broadcom (4.61 percent) and AMD (6.12 percent).
Chinese companies listed in New York also benefited. Alibaba rose 5.87 percent, as did its competitors PDD (7.41 percent), owner of Temu, and JD.com (5.43 percent).
The only shadow was the pharmaceutical sector, affected by Trump’s announcement of a reduction in prices of prescription drugs in the US, between 30 percent and 80 percent.(AFP)
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
This article was translated to English using an AI tool.
