The US stock market on Monday saw a sudden surge after China and the US signed an agreement. The agreement put a halt to the trade tariffs in a 90-day truce plan, easing tensions that had weighed down the stock markets significantly.
The S&P 500 climbed to its all-time high of 5,844. On a similar note, Dow Jones Industrial Average also climbed to its all-time high with 42,410 points. Along with these two indices, the NASDAQ Composite reached an all-time high of 18,708.
This sudden surge can be attributed to the deals during the weekend, where both nations announced a substantial reduction in their tariffs. According to the deal made between the US and China, the US will cut tariffs on Chinese goods from 145% to as low as 30%. On the other hand, China will slash its levies from 125% to as low as 10%. The 90-day window will allow both nations to develop a trade scenario that is beneficial for both countries. On top of that, last week’s US-UK agreement, which reduced tariffs on American goods to 10%, played a significant part in the surge.
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Even still, the investor market remains quite cautious about their investments as the truce is only for a limited time, and the deals after that can significantly change the landscape.
The market surge has shown how fickle and fragile market sentiment remains in such times.
