From Yahoo Finance: 2025-05-12 10:43:00

Markets react positively to US-China trade truce, with tariffs reduced for 90 days. Stocks surge: Dow up 1,060 points, Nasdaq up 2.7%, S&P 500 up 3.3%. China also cuts retaliatory tariffs on US goods. Retailers sourcing from China see big gains. Analysts advise caution and selective investing amidst market excitement.

eToro global markets analyst Lale Akoner advises investors to remain selective and cautious in light of lingering trade policy uncertainty. She suggests looking for companies insulated from trade pressures. Akoner recommends less exposure to stocks with outsized tariff risks. Top picks include Bank of America, JPMorgan, Mastercard, and Prudential.

Deutsche Bank strategist Jim Reid notes a shift in US administration’s approach to trade, prioritizing short-term economic gains over long-term security concerns. Reid highlights the necessity for continued trade relations and questions the effectiveness of high tariffs as leverage. Market experts maintain a measured stance amidst market euphoria.

Read more: US-China trade deal optimism offers important investing reminder