US and China agree to cut tariffs, leading to surge in stocks and positive market sentiment.

From Nasdaq: 2025-05-12 11:59:00

Stock indexes surged today, with the S&P 500, Dow Jones, and Nasdaq 100 all posting significant gains after the US and China agreed to cut tariffs. Risk-on sentiment returned to markets as Treasury Secretary Bessent reported “very robust and productive” trade talks. Further talks could lead to “purchasing agreements” by China.

Easing geopolitical tensions between India and Pakistan and upcoming trade talks between Ukraine and Russia also supported market gains today. The focus this week will be on tariff news and economic indicators like CPI, retail sales, PPI, manufacturing production, housing starts, and consumer sentiment.

Overseas markets also rose, with Euro Stoxx 50, Shanghai Composite, and Japan’s Nikkei Stock 225 all hitting multi-week highs. Interest rates saw volatility, with 10-year T-notes falling to a 4-week low before rebounding due to trade tension relief.

US stock movers included tech giants like Amazon, Tesla, and Meta Platforms, which soared on the tariff news. Chip stocks like ON Semiconductor and Micron Technology also surged. Travel, cruise, trucking, and energy stocks all saw gains on the positive trade developments.

However, utility and mining stocks faced pressure as T-note yields rose and gold prices fell. NRG Energy led gainers in the S&P 500 after strong earnings and an acquisition announcement. Shopify also jumped after being added to the Nasdaq 100 Index. Earnings reports for May 12 included Acadia Healthcare, DaVita, Simon Property Group, and more.



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