From Yahoo Finance: 2025-05-12 09:49:00

Stocks surged at the start of the week, with the Dow climbing over 1,000 points after the U.S. and China announced a 90-day pause on major tariffs. Indices opened sharply higher, with the Dow up 2.5%, Nasdaq up 3.5%, and S&P 500 up 2.5%.

The gains are bringing stocks close to where they were at the beginning of Trump’s second administration. The Dow is just shy of 1,200 points off, Nasdaq is 95 points short, and the S&P 500 is 192 points below the starting point.

The U.S. and China have agreed to cut tariffs, with U.S. duties on Chinese goods reduced to 30% from 145%, and China lowering its blanket tariffs on American products from 125 to 10%. The reductions will take effect on Wednesday.

The White House and China’s Ministry of Commerce issued a joint statement, highlighting the pause in tariffs as a result of mutual opening, continued communication, cooperation, and mutual respect between the two countries.

While investors are focused on tariffs, upcoming economic data releases, including the consumer price index on Tuesday and producer price index on Thursday, could impact the market rally this week.

Stay updated on this developing story on Fortune.com, where more details about the U.S.-China tariff deal and its impact on the market will be covered.

Read more: Stocks rally on China tariff deal, surging over 1,000 points at open