U.S.-China Trade Deal Sparks Wall Street Gains Amid Market Optimism
Wall Street stocks climbed as President Trump announced a U.S.-China trade deal, leading to a dip in Treasury yields and the dollar. Market optimism grew with the Consumer Price Index's slight rise and the potential easing of trade tensions. The deal includes reciprocal tariffs and agreements on trade and education.
Wall Street experienced gains on Wednesday, buoyed by President Donald Trump's announcement of a finalized U.S.-China trade deal. As a result, the dollar and U.S. Treasury yields saw a decline, sparked by the positive market sentiments surrounding the agreement and a slight increase in U.S. consumer prices in May.
A White House official detailed the new tariffs agreement, which allows the U.S. to impose up to 55% tariffs on Chinese goods, while China will reciprocate with a 10% tariff on U.S. imports. The deal also involves Beijing supplying rare earth minerals, with the U.S. allowing Chinese student enrollments in its colleges.
Major stock indices like the Dow, S&P 500, and Nasdaq showed gains, while Tesla shares rose after Elon Musk reversed his critical comments about Trump. Across the globe, market reactions varied. U.S. Treasury yields fell as the strong demand for a $39 billion note sale indicated ongoing interest in U.S. debt.
(With inputs from agencies.)
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