Wall Street Surges as US-China Tariff Agreement Surprises Investors

The US stock market began the trading week with a sharp rise following the agreement on a pause in the trade war between the US and China. All major indices on Wall Street went like a train.

» Published: May 12 2025

Wall Street Surges as US-China Tariff Agreement Surprises Investors
Photo: Richard Drew/AP/TT

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Broad S&P 500 index closed at a plus of 3.3 percent, Dow Jones industrial index rose 2.8 percent, and technology-heavy Nasdaq composite index closed up 4.4 percent.

The US Finance Minister Scott Bessent announced earlier on Monday that the talks with China had been "very productive" and that the countries had agreed to cut their respective tariffs by 115 percentage units over a 90-day period.

The markets are rising because investors are surprised by the speed of the tariff agreement with China, says Jeff Kilburg at the asset manager KKM Financial to CNBC.

Large companies dependent on manufacturing in or goods from China, such as Amazon, Apple and Tesla, were among the winners with increases between 5.8 and 7.8 percent.

Among the losers were Swedish Match owner Philip Morris, minus 3 percent, and streaming giant Netflix, minus 2.8 percent.

Gold, which has risen steadily since Trump began his trade war in early April, fell 2.7 percent. An ounce (31.1 grams) of gold now costs 3,235 dollars.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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