U.S.-China Trade Deal Sparks Global Market Rally

Global stock markets surged on Monday following the announcement of a historic trade deal between the United States and China. The Dow Jones Industrial Average surged more than 1,000 points, while the S&P 500 and Nasdaq also opened significantly higher, reflecting investor optimism over the agreement to temporarily reduce tariffs between the two largest economies in the world.

The announcement came after a weekend of high-stakes talks between U.S. and Chinese trade officials. The deal, which involves a 90-day pause on tariff hikes, will see the U.S. reduce tariffs on most Chinese imports from a steep 145% to 30%. In return, China will lower its duties on U.S. goods from 125% to 10%, signaling a potential easing of the trade war that has roiled global markets for months.

“This is a substantial move,” U.S. Treasury Secretary Scott Bessent said in a CNBC interview, adding that the reciprocal tariff reductions would significantly reduce the burden on both nations. The agreement sent a wave of optimism across global markets, with stock exchanges in Asia and Europe also posting gains.

The U.S. dollar strengthened alongside a rise in oil prices and Treasury yields. Bitcoin, another beneficiary of positive sentiment, surged above $105,000, while gold prices dropped by 3.2%. The broad market opened higher, with investors digesting the news and looking ahead to key economic data, including the upcoming Consumer Price Index report and retail sales figures later in the week.

The agreement, which follows similar positive trade news between the U.S. and the United Kingdom, has sparked renewed confidence in Wall Street. Analysts expect the market rally to extend, although attention will soon turn to the release of inflation data and corporate earnings reports from major companies such as Walmart, Sony, and Alibaba later this week.