From Yahoo Finance: 2025-05-12 06:17:00

U.S. stocks surged after a trade deal between the U.S. and China was announced, with the Dow jumping over 1,000 points. A 90-day pause on tariffs was put in place, reducing tariffs on U.S. goods to 10% and on Chinese goods to 30%. Market experts warn of potential volatility as the deadline for the pause nears.

The positive news of the trade deal saw the Dow rise by 2.81%, the S&P 500 by 3.26%, and the Nasdaq by 4.35%. The S&P 500 reached its highest level in over two months, while the 10-year Treasury yield rose to 4.475%.

Chinese Vice Premier He Lifeng stated that substantial progress was made in the trade negotiations. Treasury Secretary Scott Bessent expects further discussions with Chinese officials in the coming weeks. The trade deal with China is seen as a relief for investors concerned about high tariffs affecting trade.

The trade deal relief is beneficial for retailers like Target, Home Depot, and Best Buy, with Target gaining almost 5%, Home Depot nearly 4%, and Best Buy over 6.5%. U.S.-listed Chinese stocks and auto makers also saw gains, with tech stocks like Apple and Tesla rising significantly.

SharkNinja released containers of goods from China following the trade deal announcement, with plans to build a U.S. factory. NRG Energy also surged after acquiring power generation assets. President Trump signed an executive order on drug prices, and MicroStrategy acquired bitcoin worth $1.34 billion.

Read more: US stocks end sharply higher on China-US trade deal. S&P 500 hits more than 2-month high