Market Rally: U.S.-China Tariff Agreement Boosts S&P 500 and Tech Stocks

The S&P 500 experienced a substantial rise, hitting its highest point since early March, following a key U.S.-China agreement that significantly reduced tariffs. This development provided a sense of relief to investors who had been anxious about global trade dynamics, especially given the tensions over the past few weeks.

Under the new agreement, effective immediately for the next 90 days, the U.S. will cut its tariffs on Chinese imports from 145% to 30%, while China will reduce duties on U.S. goods from 125% to 10%. This temporary reprieve is seen as a catalyst for positive market movements, albeit experts like Patrick Kaser from Brandywine Global warn that uncertainty still lingers, affecting corporate decision-making.

On Wall Street, the inclusion of tech giants and favorable earnings reports further fueled an upswing in market indexes. The Dow Jones increased by 922.95 points, the Nasdaq by 618.07 points, and notable gains were observed in megacap stocks like Nvidia and Tesla. However, a cautious perspective remains with the CBOE Volatility Index retreating slightly, highlighting persistent apprehensions among traders.

(With inputs from agencies.)