Wall Street Surge: Stocks Climb Amid U.S.-China Trade Deal Breakthrough
Wall Street stocks saw gains as the U.S. reached a pivotal trade deal with China. The agreement allows tariffs on imports from both nations. Consumer prices showed only marginal increases, easing fears of tariff-induced inflation, while markets responded positively to the news.
Wall Street witnessed a significant uptick as stocks rallied following the announcement of a long-anticipated U.S.-China trade agreement. President Donald Trump declared the deal complete, calming market nerves and contributing to a dip in U.S. Treasury yields and the dollar.
The trade agreement outlines that the U.S. will impose a 55% tariff on imported Chinese goods, with various levels reflecting existing and new trade policies. In return, China agreed to apply a 10% tariff on U.S. imports. The deal also includes arrangements on imports of rare earth minerals and educational exchanges.
Despite a minimal increase in the Consumer Price Index of 0.1% in May, experts like Chris Zaccarelli of Northlight Asset Management highlight a stabilizing market climate, stressing that the tariff-induced inflation narrative may soon dissipate. This sentiment reflected in Wall Street gains, with the Dow, S&P 500, and Nasdaq all displaying upward momentum.
(With inputs from agencies.)
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