{"id":854501,"date":"2025-06-09T22:12:00","date_gmt":"2025-06-10T03:12:00","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/09\/market-rallies-after-news-of-u-s\/"},"modified":"2025-06-09T22:12:00","modified_gmt":"2025-06-10T03:12:00","slug":"market-rallies-after-news-of-u-s","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/09\/market-rallies-after-news-of-u-s\/","title":{"rendered":"Market rallies after news of U.S."},"content":{"rendered":"
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Mary Cunningham<\/p>\n

Reporter, MoneyWatch<\/p>\n<\/p><\/div>\n

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\n Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24\/7 as part of the CBS News Associate Program.\n <\/p>\n

Read Full Bio<\/a>\n <\/p>\n<\/div><\/div>\n

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U.S., China agree to temporarily ease tariffs <\/span><\/p>\n<\/div>\n

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U.S. and China have agreed to temporarily reduce tariffs for 90 days. Here are the details.<\/span><\/p>\n

01:38<\/span><\/p>\n

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News of a U.S. agreement with China to temporarily ease tariffs<\/a><\/span> sent stocks soaring on Monday.<\/p>\n

The S&P 500 rose 184 points, or 3.3%, to close at 5,844, while the Dow Jones Industrial Average leapt 1,161 points, or 2.8%, to close at 42,410. Early morning gains helped the S&P 500 index float back above where it was on April 2, the day President Trump announced sweeping tariffs that threatened to upend the global economy and spark a recession.<\/p>\n

The Nasdaq Composite rose 4.4%, providing a measure of relief to tech companies at risk of retaliatory Chinese tariffs and export restrictions. Nvidia and Apple shares gained 5.4% and 6.3%, respectively.<\/p>\n

In a joint statement released by The White House on Monday, the U.S. and China on Monday announced that they would substantially lower tariffs<\/a><\/span> for 90 days. The agreement was struck over the weekend in Switzerland, where Treasury Secretary Scott Bessent and U.S. Trade Administrator Jamieson Greer\u00a0met with a Chinese trade delegation<\/a><\/span>.\u00a0<\/p>\n

Starting May 14, both countries will lower tariffs by 115%, according to the White House<\/a>. That will bring the U.S. tariff on Chinese imports down to 30% from as high as 145%, and China’s rate on American goods down to 10% from 125%. The 10% baseline tariff and other U.S. measures will remain in place.<\/p>\n

UBS Global Wealth Management projects the U.S. tariff on Chinese imports will ultimately settle around 30% to 40%.\u00a0<\/p>\n

“Investors will now be focused on signs that the temporary fix can be turned into a lasting agreement,” said Ulrike Hoffmann-Burchardi, chief investment officer at UBS Global Wealth Management, in a research note.<\/p>\n

The value of the dollar climbed against other major currencies, while crude oil prices jumped more than 3% during midday trading. Yields on the 10-Year Treasury also rose to 4.5%, the highest its been since April 11.<\/p>\n

Cautiously optimistic\u00a0<\/h2>\n

Investors cheered the boom in stocks, but also warned the market rally could falter over the next three months as the U.S. and China approach the end of the tariff pause in August.<\/p>\n

“This is a textbook recovery after the market’s waterfall declines,” said Gina Bolvin, president of Bolvin Wealth Management Group in an email to CBS MoneyWatch. “Expect volatility as we approach the 90-day reciprocal tariffs deadline.”<\/p>\n

Still, the Trump administration’s success in striking an agreement with China \u2014 which was viewed as one of the more difficult agreements to negotiate \u2014 paves a smoother road ahead for Wall Street investors.\u00a0<\/p>\n

The U.S.\u00a0reached a deal<\/a><\/span>\u00a0with the U.K. last week, the first trade pact to be announced since so-called “Liberation Day.” Mr. Trump introduced the 10% tariff baseline on most imports on April 2, which remains in place.<\/p>\n

“The market is going to take great comfort in the idea that there is a way forward and that all-time highs in the stock market are achievable before yearend,” said Chris Zaccarelli, chief investment officer for Northlight Asset Management, in a research note.<\/p>\n

The news also eased fears that the tariffs could tip the U.S. into a serious slump. Oxford Economics dropped their odds of\u00a0 a recession this year to 35%, citing the tariff truce. Still, they maintained a conservative outlook.<\/p>\n

“But as we learned in the first trade war, we don’t want to read too much into a single agreement,” said Ryan Sweet, chief US economist at Oxford Economics, in a research note on Monday.<\/p>\n

Tech, retail and travel gains<\/strong><\/h2>\n

Companies across retail, tech and travel saw widespread gains, with news of reduced tariffs bringing a wave of relief to businesses like Apple that rely on Chinese imports for their inventory of name brand products.<\/p>\n

Amazon, which has already hiked prices<\/a><\/span> on hundreds of goods as a result of the tariffs, rose 8%. Over 70% of the products sold on Amazon are produced in China, according to a\u00a0survey<\/a> conducted by Jungle Scout.<\/p>\n

The travel industry also saw a jump, with Delta Air Lines and American Airlines each soaring more than 5% by the end of the trading day. Carnival cruise line rose 9.6% and Norwegian cruise line surged 8.2%.\u00a0<\/p>\n

Among the biggest gains were apparel and footwear companies, whose production is often based in China and elsewhere in Asia. Lululemon leapt 8.7% and Nike rose 7.3%.<\/p>\n

The Associated Press<\/span><\/p>\n

contributed to this report.\n <\/p>\n