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U.S. stocks roared back on Monday after the U.S. and China agreed to temporarily slash tariffs following negotiations over the weekend in Switzerland, raising hopes a trade war won’t push the economy into a recession.
The Dow Jones Industrials screamed higher 1,160.72 points, or 2.8%, to 42,410.10.
The S&P 500 index hiked 184.26 points, or 3.3%, to 5,844.20. The benchmark has cut its year-to-date losses to just 0.6%.
The NASDAQ Composite popped 779.43 points, or 4.4%, to 18,708.34, as the initial China agreement sent technology stocks tied to the country — like Tesla and Apple — flying higher. It was the best day since April 9 for all three indexes.
Tesla jumped 6%, while Apple and Nvidia gained 6% and 5%. Shares of companies that rely the most on Chinese goods rallied the most. Best Buy popped 6%, Dell Technologies climbed 8% Amazon advanced 8%.
Defensive stocks where investors hid out during the tariff turmoil were lower on Monday. Coca-Cola and Philip Morris shed 2% apiece. AT&T lost 3%.
Treasury Secretary Scott Bessent said on Monday that talks with China had been “very productive” and both countries had agreed to cut “reciprocal” tariffs by 115% for 90 days. That brings U.S. tariffs on Chinese goods down to 30%, and Chinese tariffs on U.S. imports to 10%.
Bessent told the media on Monday that he expects to meet once again with representatives from Beijing in the “next few weeks” to iron out a bigger agreement.
Prices for the 10-year Treasury eased, raising yields to 4.47% from Friday’s 4.39%. Treasury prices and yields move in opposite directions
Oil prices gained 80 cents to $61.82 U.S. a barrel.
Prices for gold sank $104.40 to $3,239.60 U.S.
