US, China Reach 90-Day Trade Truce, Markets Rally

Global markets surged after the United States and China agreed to a 90-day truce in their trade war, sharply reducing most tariffs and temporarily easing recession fears. U.S. tariffs on Chinese goods were cut from 145% to 30%, and Chinese tariffs on U.S. goods dropped from 125% to 10%, with China also agreeing to remove non-tariff barriers. Major U.S. stock indices soared, with the Dow Jones up over 900 points, the S&P 500 rising more than 2%, and the Nasdaq climbing by over 3%, putting it on track to exit bear market territory. The agreement boosted risk appetite, lifting crude oil prices, strengthening the U.S. dollar, raising Treasury yields, and driving gains in technology, travel, retail, and crypto markets. Despite the optimism, analysts noted the truce is temporary and warned that uncertainty remains over whether a permanent deal will be reached within the 90-day window. The development marked a significant easing of global trade tensions.