U.S. stock markets saw significant gains on Monday after the United States and China declared a 90-day truce in their ongoing trade dispute, lifting investor confidence and easing concerns over a potential global economic slowdown.
The S&P 500 index jumped 2.6% in early trading, bringing it to within 5.5% of the record high it set in February. This renewed momentum follows a period of market instability fueled by escalating trade tensions between the world’s two largest economies.
Under the terms of the temporary agreement, both Washington and Beijing pledged to roll back a substantial portion of the tariffs imposed over the past year. These tariffs had threatened to raise prices for American consumers and disrupt supply chains, with economists warning that an extended trade conflict could lead to a U.S. recession and shortages across retail sectors.
Market analysts viewed the truce as a positive short-term development, offering companies and consumers relief from the escalating costs tied to import taxes. However, they also cautioned that the 90-day period merely provides a window for further negotiations and does not guarantee a long-term resolution.
The optimism was reflected across all major indices, with technology and industrial sectors among the biggest winners. Investors are now awaiting further details on the proposed timeline and steps each country will take to work toward a more comprehensive deal.
The rally underscores the sensitivity of global markets to geopolitical developments, particularly when they involve economic heavyweights like the United States and China. While the current move has helped the market regain footing, its sustainability will likely depend on continued progress in trade negotiations over the coming months.
Source: https:// – Courtesy of the original publisher.
