U.S.-China Tariff Deal Sparks Market Surge

The stock market saw a massive surge on Monday, with the Dow Jones Industrial Average climbing over 1,100 points, marking a strong recovery after recent economic volatility. The S&P 500 rose 3.25%, the Nasdaq Composite jumped nearly 4.34%, and the Russell 2000 gained 3.56%. Leading the charge were tech and retail stocks, many of which have significant exposure to China.

Among the top performers were Tesla, which gained 7%, Apple with a 6% rise, and Amazon, which surged 8%. Other major players like Dell and Best Buy also posted strong gains, reflecting investor optimism.

This rally follows a breakthrough in U.S.-China trade relations after high-stakes negotiations in Geneva over the weekend. As part of the agreement, the U.S. lowered tariffs on Chinese goods to 30%, down from a recent high of 145%. In turn, Beijing reduced retaliatory tariffs on U.S. imports to 10%. Treasury Secretary Scott Bessent described the talks as “very productive” and hinted at further discussions in the coming weeks.

President Donald Trump hailed the deal as a “total reset” of U.S.-China trade relations, though he noted that a separate 20% tariff on fentanyl enforcement would remain intact. The tariff rollback is set to last for 90 days while both sides work toward a more comprehensive deal.

Despite the positive movement in the markets, the Dow remains down 0.32% or 134 points year-to-date, while the Nasdaq is still down more than 3%. The trade disruptions had a significant impact, with the U.S. Treasury reporting an additional $7.6 billion in duties last month.

Meanwhile, the cryptocurrency market faced a pullback, with Bitcoin falling 2.75% to $100,771 as of Monday afternoon. This drop followed the announcement of the temporary 90-day tariff suspension, which eased some macroeconomic uncertainty but led traders to sell the news after a month-long rally. The decline suggests that Bitcoin's recent outperformance may slow as broader markets catch up.