On Monday, May 12, 2025, U.S. stock markets experienced significant gains following a landmark trade agreement between the United States and China. The Dow Jones Industrial Average soared by 1,160 points (2.8%), the S&P 500 increased by 3.3%, and the Nasdaq Composite jumped 4.4%, marking their largest single-day gains since April 9.
The agreement entails a substantial reduction in tariffs: the U.S. will lower tariffs on most Chinese imports from 145% to 30%, while China will reduce tariffs on U.S. goods from 125% to 10%. However, certain sector-specific tariffs, such as those on steel and aluminum, remain unchanged.
Major technology stocks led the rally. Apple Inc. (AAPL) rose by 6.3%, reaching a key resistance level. Nvidia Corp. (NVDA) gained 5.4%, and Tesla Inc. (TSLA) increased by 5.7%, continuing a multi-session rally.
Investors are now focusing on upcoming economic indicators and earnings reports from companies like Sea Ltd., Nu Holdings, CoreWeave, and Alibaba. While the market’s momentum is strong, analysts advise cautious investment strategies, emphasizing the importance of identifying strong breakouts and correct entry points.
Overall, the trade agreement has injected renewed optimism into the markets, with significant gains across major indexes and sectors.
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