U.S. and China reach trade breakthrough, markets respond positively.

From Nasdaq: 2025-05-12 11:03:00

In a surprising turn of events, the U.S. and China have reached a trade breakthrough with a 90-day pause on reciprocal tariffs. Stock markets have responded positively, with the Dow up +1075 points, S&P up +175 points, Nasdaq up +800 points, and the Russell 2000 up +90 points in pre-market trading.

The risk of recession has decreased as a permanent trade deal could further boost markets. The Federal Reserve is now predicted to cut interest rates later in the year, moving the probability from July to September. Today’s trading session will include the Monthly U.S. Budget for April.

NRG Energy posted strong Q1 earnings of $2.62 per share, beating estimates by +45.6%, with revenues of $8.59 billion. Sally Beauty also beat on earnings at 42 cents per share, but fell short on revenues at $883 million. Shares of both companies are up in early trading.

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