Wall Street Rallies on Tariff Truce and Technology Boost
Wall Street indexes climbed amid a temporary U.S.-China tariff peace and strong performance by tech stocks. Optimism grew following lowered tariffs, trade agreements, and promising inflation data. The S&P 500 and Nasdaq hit highs with technology leading gains as significant trade agreements were secured during President Trump's Gulf tour.
The major Wall Street indexes looked set to open higher on Wednesday, maintaining the week's positive momentum fueled by easing inflation data and a temporary tariff truce between the U.S. and China. President Donald Trump's visit to the Gulf further bolstered hopes for new trade agreements.
Investor sentiment has been buoyant since the weekend, with the U.S. announcing a temporary reduction in tariffs on Chinese goods from 145% to 30% for a three-month period, while China reciprocated by cutting its duties on U.S. imports to 10% from 125%. Despite lingering uncertainties, markets anticipate smoother U.S.-China trade relations.
The S&P 500 and Nasdaq showed strength after moderate consumer price increases in April. Markets are also eyeing Federal Reserve remarks later this week, with technology stocks like Nvidia gaining ground. President Trump's Gulf tour secured $600 billion in commitments, while apparel retailer American Eagle Outfitters saw shares tumble on economic uncertainty.
(With inputs from agencies.)
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