U.S. stocks soared Monday after a surprise U.S.–China agreement to temporarily cut tariffs offered relief to investors fearing a prolonged trade war.
The S&P 500 jumped 3.3%, its highest close since early March. The Dow Jones rose 2.8% (over 1,100 points), while the Nasdaq Composite led with a 4.3% gain, fueled by a rebound in Big Tech.
The 90-day truce slashes U.S. tariffs on most Chinese goods from 145% to 30%, while China will cut its tariffs on American imports from 125% to 10%. The scale of the reductions caught markets off guard.
Tech giants previously hit by trade tensions saw sharp gains: Nvidia rose over 5%, while Amazon, Apple, and Tesla also rallied.
Separately, President Trump signed an executive order to lower U.S. drug prices by up to 59%, a move that could increase pharmaceutical revenues abroad, according to the White House.
The U.S. dollar and Treasury yields edged higher, while oil led a broader rally in commodities.
Investors now turn to inflation data: the Consumer Price Index (CPI) is due Tuesday, followed by retail sales and the Producer Price Index (PPI) on Thursday.