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Yahoo
13-05-2025
- Business
- Yahoo
US stocks end sharply higher on China-US trade deal. S&P 500 hits more than 2-month high
U.S. stocks closed sharply higher, with the blue-chip Dow surging more than 1,000 points, after the U.S. announced a trade deal with China. The U.S. and China put a 90-day pause on most of the tariffs the countries had imposed on one another. Effective from Wednesday, the U.S. will temporarily reduce tariffs on China to 30%, down from 145%, and China will reduce tariffs on U.S. goods to 10%, down from 125%. "This was a larger-than-expected the negotiation process will likely remain challenging," said Lynn Song, chief economist of greater China at Dutch bank ING. As the deadline for the 90-day pause nears, tensions may reescalate, some said. "Expect volatility as we approach the 90-day reciprocal tariffs deadline," wrote Gina Bolvin, president of Bolvin Wealth Management Group, in a note. "But today, the market is blowing through resistance levels and if it sticks, this is a big WIN for Trump, for stocks and for investors." The Dow soared 2.81%, or 1,160.72 points, to 42,410.10; while the broad S&P 500 jumped 3.26%, or 184.28 points, to 5,844.19; and the tech-heavy Nasdaq rallied 4.35%, or 779.43 points, to 18,708.34. The S&P 500 touched the highest level in more than two months. The benchmark 10-year Treasury yield rose to 4.475% as investors bet better tariff terms with China could save the economy from a recession and the Federal Reserve wouldn't have to cut rates any time soon. Oil prices also rose more than 1% on hopes a chugging economy will keep up demand. Gold prices shed about 3% as the need faded for a safe-haven investment. China's Vice Premier He Lifeng described the meetings on Sunday as "candid, in-depth and constructive" and said "substantial progress was made and important consensus was reached," according to Chinese state media. Treasury Secretary Scott Bessent said on Monday morning he expected to meet with Chinese officals again in coming weeks to further discuss trade. 'I would imagine in the next few weeks we will be meeting again to get rolling on a more fulsome agreement,' Bessent said on CNBC's 'Squawk Box.' A deal with China, one of the U.S.' top trading partners, is seen as a relief for investors who worried tariffs as high as 145% would severely limit trade, raise prices and hurt the U.S. economy. The U.S. and the U.K. announced a trade deal framework last week that started to turn sentiment more optimistic that Trump could get trade deals done. The tariff pause is positive for companies, analysts said. "Management teams could witness significantly fewer costs, as most businesses have opted to plan with the assumption of a 145% tariff in place," said Randal Konik, equity analyst at Jefferies. That should help earnings outlooks, experts said. "Corporate America can handle 10% tariffs, and this will only be a 2% hit to earnings, not the 5% that rattled markets," said Gina Bolvin, president of Bolvin Wealth Management Group. Retail: Tariff relief from the U.S.- China deal boosted major retailers like Target, Home Depot and Best Buy that sell a lot of "Made in China" goods. Target shares gained almost 5%, Home Depot added nearly 4% and Best Buy rose more than 6.5%. Home furnishing retailer Williams-Sonoma, which sources nearly a quarter of products from China, and Nike, which makes about 18% of its footwear in China, also saw jumps in their stock prices. Small businesses like those who sell on Amazon Marketplace also will feel relief. Amazon shares jumped 8%. U.S. listed Chinese stocks: Chinese companies, including ecommerce giant Alibaba, Chinese tech stocks like and PDD, and EV manufacturers Nio, XPeng and Li Auto, rallied. Alibaba rose 5.82%, added 6.47%, PDD rallied 6.14%, NIO rose 5.79%, XPeng was up 7.62% and Li Auto gained 6.57%. Auto makers: Shares of car makers that rely on Chinese parts rose. Ford stock was up 2.53% and GM gained 4.48%. Tech stocks: Apple, which assembles many of its iPhones in China and said it may raise iPhone prices, saw its stock jump more than 6%. Tesla rose 6.75%, regaining its market capitalization above $1 trillion for the first time since February. China is a key market for the EV maker. Chip stocks also soared, with the iShares Semiconductor ETF (SOXX) having its best day since April 9. SharkNinja Chief Executive Mark Barrocas instructed factories in China to release hundreds of containers of goods bound for the U.S., including coffee makers and the Ninja Slushie, a frozen drink maker, after news broke of the U.S.-China trade deal, the Wall Street Journal reported. Still, SharkNinja is still looking to build a factory in the U.S. to produce low-labor intensive products like coolers and certain vacuum cleaners, the story said. Barrocas said the factory would have to be built from the ground up and goods wouldn't start rolling off the production lines until the end of 2026 at the earliest, the WSJ said. SharkNinja shares rose 7.37%. In a non-tariff related move, NRG Energy jumped 26.21% and was the biggest percentage gainer in the S&P 500 after the utility said it would acquire power generation assets from energy infrastructure investment firm LS Power in a deal valued at $12 billion. President Donald Trump signed an executive order giving drugmakers price targets in the next 30 days, and will take further action to lower prices if those companies do not make "significant progress" towards those goals within six months of the order being signed. "I will be instituting a MOST FAVORED NATION'S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World," Trump said in an earllier post on Truth Social. "Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before." Trump tried a similar move in his first term to bring the U.S. in line with other countries but was blocked by the courts. MicroStrategy founder and executive chairman Michael Saylor announced that the firm acquired 13,390 bitcoin for approximately $1.34 billion from May 5-11. MicroStrategy is now known as Strategy. Bitcoin was last down 2.08% at $101,880.40. This story was updated with new information. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: Dow surges, S&P 500 jumps to more than 2-month high on US-China deal Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Dubai Eye
13-05-2025
- Business
- Dubai Eye
Global markets rally as US and China agree to 90-Day tariff truce
Global shares rallied, while gold and safe-haven currencies slumped against a resurgent dollar on Monday as the US and China agreed to temporarily slash harsh reciprocal tariffs and cooperate. Following weekend talks in Geneva, both sides agreed that the US would drop levies on Chinese imports from 145 per cent to 30 per cent during a 90-day negotiation period and China would cut duties from 125 per cent to 10 per cent. Wall Street stocks made significant gains, with the S&P 500 index jumping 3.3 per cent and the tech-focused Nasdaq Composite advancing 4.4 per cent. In a joint statement on Monday, Washington and Beijing said they recognised the importance of their bilateral trade relationship to both countries and the global economy, in language that analysts said had brightened the market outlook. An index tracking the dollar against other major currencies rose further from last month's three-year trough with an almost 1.17 per cent gain, while Japan's yen fell 2.1 per cent to 148.39 per dollar. The retreat from safe-haven assets pushed Switzerland's franc 1.8 per cent lower on the day, in a jolt of relief for Swiss exporters and the nation's central bank. Spot gold prices, which hit an all-time high of $3,500 last month and often move inversely to the dollar, fell 2.7 per cent to $3,234.8 an ounce. "This is a textbook recovery after the market's waterfall declines," said Gina Bolvin, the president of Bolvin Wealth Management Group in Boston. "The market is blowing through resistance levels and if it sticks, this is a big 'WIN' for Trump, for stocks and for investors." The euro, which surged in April as investors questioned the dollar's long-held status as the world's reserve currency, was 1.4 per cent lower at $1.1090.
The Star
13-05-2025
- Business
- The Star
Stocks, dollar surge as US and China agree 90-day tariff relief
NEW YORK/LONDON: Global shares rallied, while gold and safe-haven currencies slumped against a resurgent dollar on Monday as the U.S. and China agreed to temporarily slash harsh reciprocal tariffs and cooperate to avoid rupturing the global economy. Following weekend talks in Geneva, both sides agreed that the U.S. would drop levies on Chinese imports from 145% to 30% during a 90-day negotiation period and China would cut duties from 125% to 10%. Wall Street stocks made significant gains, with the S&P 500 index jumping 3.3% and the tech-focused Nasdaq Composite advancing 4.4%. In a joint statement on Monday, Washington and Beijing said they recognised the importance of their bilateral trade relationship to both countries and the global economy, in language that analysts said had brightened the market outlook. An index tracking the dollar against other major currencies rose further from last month's three-year trough with an almost 1.17% gain, while Japan's yen fell 2.1% to 148.39 per dollar. The retreat from safe-haven assets pushed Switzerland's franc 1.8% lower on the day, in a jolt of relief for Swiss exporters and the nation's central bank. Spot gold prices, which hit an all-time high of $3,500 last month and often move inversely to the dollar, fell 2.7% to $3,234.8 an ounce. "This is a textbook recovery after the market's waterfall declines," said Gina Bolvin, the president of Bolvin Wealth Management Group in Boston. "The market is blowing through resistance levels and if it sticks, this is a big 'WIN' for Trump, for stocks and for investors." The euro, which surged in April as investors questioned the dollar's long-held status as the world's reserve currency, was 1.4% lower at $1.1090. 'RELIEF' Kit Juckes, chief FX strategist at Societe Generale, said the tariff pause was a "substantial relief" for the U.S. and China. With tariff anxiety having already caused some Chinese exporters to consider their futures, data this weekend showed the nation's factory-gate prices had dropped by the most in six months in April. Trump's erratic trade policies had also sparked fears over U.S. corporate earnings, with investors having entered this week nervous about an impending update from retail giant Walmart after a slew of U.S. multi-nationals pulled their forecasts. On Monday, however, commodities traders rushed to reassess the recessionary risks of tariff uncertainty, with oil traders pricing Brent crude for delivery next month almost 1.9% higher at $65.10 a barrel, up from around $57 a week ago. Europe's regional STOXX 600 was last trading 1.2% higher and Hong Kong's Hang Seng Index ended the day with an almost 3% gain. FURTHER TO RUN? While Trump's April 2 tariff announcement initially caused world stocks to drop sharply, MSCI's index of global shares , which is U.S.-dominated, was trading back at levels last seen in late March and was up 2%. Some analysts and investors warned, however, that this was not the end of unpredictable trade talks between the White House and Beijing and that any relief may soon be overshadowed by data showing the U.S. economy had slowed. Sheldon MacDonald, CIO at British asset manager Marlborough, said that even if the U.S. maintained 30% tariffs on China this was still "negative" for growth, with "no all-clear on recession fears just yet." The 10-year U.S. Treasury yield rose almost 10 basis points on the day, as the price of the government debt fell, with almost identical moves for benchmark German Bunds and British gilts. But analysts at Citi cautioned Trump supporters may not support a compromise with China and recalled the short-lived trade truce during his first presidency in 2018-2019, when both nations agreed a 90-day tariff halt before tensions resumed. "It's going to take some time to get more clarity," said John Praveen, managing director co-chief investment officer at Paleo Leon in New Jersey. "Until we have a final agreement on both sides, when Trump and Chinese President Xi meet and shake hands, that's when we will begin to see the blue skies." - Reuters
Yahoo
12-05-2025
- Business
- Yahoo
Stocks, dollar surge as US and China agree 90-day tariff relief
By Koh Gui Qing and Naomi Rovnick NEW YORK/LONDON (Reuters) -Global shares rallied, while gold and safe-haven currencies slumped against a resurgent dollar on Monday as the U.S. and China agreed to temporarily slash harsh reciprocal tariffs and cooperate to avoid rupturing the global economy. Following weekend talks in Geneva, both sides agreed that the U.S. would drop levies on Chinese imports from 145% to 30% during a 90-day negotiation period and China would cut duties from 125% to 10%. Wall Street stocks were set for significant daily gains, with the S&P 500 index jumping 3% and the tech-focused Nasdaq Composite advancing 4.1%. In a joint statement on Monday, Washington and Beijing said they recognised the importance of their bilateral trade relationship to both countries and the global economy, in language that analysts said had brightened the market outlook. An index tracking the dollar against other major currencies rose further from last month's three-year trough with an almost 1.25% gain, while Japan's yen fell 2.2% to 148.48 per dollar. The retreat from safe-haven assets pushed Switzerland's franc 1.4% lower on the day, in a jolt of relief for Swiss exporters and the nation's central bank. Spot gold prices, which hit an all-time high of $3,500 last month and often move inversely to the dollar, fell 3% to $3,225.3 an ounce. "This is a textbook recovery after the market's waterfall declines," said Gina Bolvin, the president of Bolvin Wealth Management Group in Boston. "The market is blowing through resistance levels and if it sticks, this is a big 'WIN' for Trump, for stocks and for investors." The euro, which surged in April as investors questioned the dollar's long-held status as the world's reserve currency, was 1.2% lower at $1.1113. 'RELIEF' Kit Juckes, chief FX strategist at Societe Generale, said the tariff pause was a "substantial relief" for the U.S. and China. With tariff anxiety having already caused some Chinese exporters to consider their futures, data this weekend showed the nation's factory-gate prices had dropped by the most in six months in April. Trump's erratic trade policies had also sparked fears over U.S. corporate earnings, with investors having entered this week nervous about an impending update from retail giant Walmart after a slew of U.S. multi-nationals pulled their forecasts. On Monday, however, commodities traders rushed to reassess the recessionary risks of tariff uncertainty, with oil traders pricing Brent crude for delivery next month almost 1.9% higher at $65.10 a barrel, up from around $57 a week ago. Europe's regional STOXX 600 was last trading 1.2% higher and Hong Kong's Hang Seng Index ended the day with an almost 3% gain. FURTHER TO RUN? While Trump's April 2 tariff announcement initially caused world stocks to drop sharply, MSCI's index of global shares, which is U.S.-dominated, was trading back at levels last seen in late March and was up 1.8%. Some analysts and investors warned, however, that this was not the end of unpredictable trade talks between the White House and Beijing and that any relief may soon be overshadowed by data showing the U.S. economy had slowed. Sheldon MacDonald, CIO at British asset manager Marlborough, said that even if the U.S. maintained 30% tariffs on China this was still "negative" for growth, with "no all-clear on recession fears just yet". Market pricing at the start of the U.S. morning showed extreme optimism that a trade war with China would be avoided, however, with investors cashing out of traditionally low-risk government debt instruments to load up on stocks. The 10-year U.S. Treasury yield rose almost 8 basis points on the day, as the price of the government debt fell, with almost identical moves for benchmark German Bunds and British gilts. But analysts at Citi cautioned Trump supporters may not support a compromise with China and recalled the short-lived trade truce during his first presidency in 2018-2019, when both nations agreed a 90-day tariff halt before tensions resumed. "It's going to take some time to get more clarity," said John Praveen, managing director co-chief investment officer at Paleo Leon in New Jersey. "Until we have a final agreement on both sides, when Trump and Chinese President Xi meet and shake hands, that's when we will begin to see the blue skies." (Additional reporting by Wayne Cole in Sydney and Vidya Ranganathan in Singapore; Editing by Ros Russell and Alex Richardson) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Zawya
11-04-2025
- Business
- Zawya
Wall Street's week of whiplash brought fear, relief and caution
NEW YORK - Wall Street traders and investors have been sent to the brink over the past week by President Donald Trump's tariff policy, scrambling to figure out strategies and calming clients as trillions were wiped off stock market values. A massive relief rally, however, comes with a caution sign. Since announcing sweeping tariffs on April 2, the S&P 500 has done a near round-trip of historic proportions. The benchmark index extended its slide from its February high to the brink of confirming a bear market, as investors priced in dire scenarios for the economy after Trump announced tariffs that would raise U.S. trade barriers to the highest levels in over a century. The Cboe Volatility index, Wall Street's "fear gauge," soared earlier this week to its highest closing level since the COVID-19 pandemic five years ago. Then, in a stunning reversal on Wednesday, Trump said he would temporarily lower the hefty duties on dozens of countries while further ramping up pressure on China, prompting a massive relief rally, sending the S&P 500 up nearly 10%, its biggest one-day jump since October 2008. The rapid policy changes translated into non-stop action, stress and drama on trading floors and investment houses. "It's been a quite a wild ride," said Joe Tigay, portfolio manager for Rational Equity Armor Fund, who said it brought back memories of trading through massive swings during the pandemic. "Personally, honestly, this is what I live for." The rapid pace of unfolding events in recent days prompted a deft juggling of priorities, including client calls, trading and making sense of markets, said Chris Murphy, co-head of derivative strategy at Susquehanna Financial Group, as the market drama surpassed the wild trading seen during the COVID-induced market crash of March 2020. "This is more headline driven than what we saw in COVID," Murphy said. "There's just not enough time because you're going from one thing to the next." Clients wanted frequent updates as market losses stacked up, advisers said. "We reached out to as many clients as possible via a client letter and phone calls," said Gina Bolvin, president of Bolvin Wealth Management Group in Boston. "Some of my nervous clients were comforted when they learned that as the market was declining I had been investing some of my own money." But while some have embraced the volatility, others caution that the market remains fragile, U.S. policy remains unpredictable and that the U.S. is not out of the woods. "It's definitely good news because it shows that the negotiations are in good enough shape that they think that they've accomplished what they needed to by this initial conversation," said Mark Hackett, chief market strategist, Nationwide Investment Management Group in Philadelphia. "But I want to put a pretty big caveat out there because 8% rallies in 20 minutes in the Nasdaq aren't a heck of a lot healthier than 8% declines." TRUMP PUT BACK ON? After a week of concern that Trump was no longer worried about stock market losses, some investors speculated that markets had prompted Trump's decision, including a rout in the bond market that came to a head on Wednesday and led to a massive spike in Treasury yields. Investors had previously relied on the theory of a Trump put, a reference to investor belief that Trump would reverse policy if markets ran into trouble. "I think this is a reminder that Trump does not want a bear market in stocks, and he does not want a recession, so this is forcing a rethink of the approach," said Talley Leger, chief market strategist, The Wealth Consulting Group. But many investors said persistent uncertainty around tariff policy could still have broad fallout, impeding the ability of companies to plan and influencing consumer behavior. "They hit the pause button and the market rejoiced," said Alex Morris, chief investment officer at F/m Investments. "But of course, there is no promise that we'll manage to solve anything in 90 days." Deutsche Bank said in a note that while the Trump put appears back on, the policy back-and-forth will cause lasting damage. "Even if the tariffs are permanently suspended, damage has been done to the economy via a permanent sense of unpredictability in policy." Market volatility on Wednesday had been trained on the bond market, which saw a bruising selloff in U.S. Treasuries, with some market participants saying funds had been selling such liquid assets such as Treasuries to meet margin calls. "There's definitely sensitivity to what happens in the Treasury market," said Matt Orton, chief market strategist at Raymond James Investment Management. "If something breaks in the Treasury market, that could be very, very bad." Trump said on Wednesday the bond market had recovered well after investors became queasy about it in reaction to his tariffs. "The bond market now is beautiful," he told reporters. The White House said Trump's move to hike tariffs on China and pause tariffs on other countries came after receiving "good-faith commitments from a majority of our trading partners willing to strike favorable trade deals." "The only interest guiding President Trump's decision making is the best interest of the American people," White House spokesman Kush Desai said. "The Trump administration remains committed to using every tool at our disposal to address the national emergency posed by chronic trade deficits – including both tariffs and negotiations.' 'STRESSFUL WEEK' Some investors felt the relentless string of bad news for markets and wild gyrations were impossible to maintain. "We had assumed that some form of capitulation would be forthcoming," said Christopher Hodge, chief economist for the US at Natixis in New York, citing the financial carnage and expectation of economic pain. Since Trump unveiled his tariff plan on April 2, the stock market has undergone some record-breaking gyrations. It notched an 8.1% intra-day price swing in the benchmark S&P 500 index on Monday, while Tuesday's market saw one of the biggest reversals for the benchmark index in at least the last 50 years. Wednesday's market about-face was even more stark, with the day's 10.7% range stacking up as the fifth largest in at least the last fifty years. Bolvin said this had been "a stressful week." "When my 3 year old woke up and asked if the market was down, I knew we were close to the bottom," Bolvin said. (Additional reporting by Lewis Krauskopf, Laura Matthews, Chuck Mikolajczak, Carolina Mandl, Davide Barbuscia; editing by Megan Davies and Deepa Babington)
