Global Markets Rally as U.S.-China Ease Trade War Tensions

Global stock markets experienced a significant surge on Monday following the announcement that the U.S. and China would temporarily reduce steep tariffs for a 90-day period. The move, which taps the brakes on the ongoing trade war between the world's two largest economies, provided a sense of relief amid fears of a looming global recession.

Financial markets reacted positively to the announcement. Investors welcomed the news, resulting in appreciable gains on Wall Street, with the S&P 500 reaching its highest level since March and the Nasdaq Composite also hitting a peak since February. Despite the temporary nature of the truce, questions remain about the resolution of underlying trade issues.

While applauding this development, businesses and economic analysts have urged further clarity and long-term solutions. The reduction in tariffs is seen by some experts, including Scott Kennedy of the Center for Strategic and International Studies, as a temporary retreat by the U.S. without a comprehensive long-term plan. Future negotiations are anticipated, underscoring the complexity of U.S.-China trade relations.

(With inputs from agencies.)