{"id":49438,"date":"2025-05-12T10:28:53","date_gmt":"2025-05-12T15:28:53","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/"},"modified":"2025-05-12T10:28:53","modified_gmt":"2025-05-12T15:28:53","slug":"todays-midday-market-update-us-china-trade-truce-sparks-major-rally","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/","title":{"rendered":"Today&#8217;s Midday Market Update: US-China Trade Truce Sparks Major Rally"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/#Markets_Soar_as_US_and_China_Slash_Tariffs_for_90_Days\" >Markets Soar as US and China Slash Tariffs for 90 Days<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/#US-China_Trade_Deal_Fuels_Market_Optimism\" >US-China Trade Deal Fuels Market Optimism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/#Tech_Giants_Lead_the_Charge\" >Tech Giants Lead the Charge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/#Commodities_Respond_to_Trade_News\" >Commodities Respond to Trade News<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/#Upcoming_Market_Events_to_Watch\" >Upcoming Market Events to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/#Earnings_Season_Continues\" >Earnings Season Continues<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/todays-midday-market-update-us-china-trade-truce-sparks-major-rally\/49438\/#Market_Outlook\" >Market Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Markets_Soar_as_US_and_China_Slash_Tariffs_for_90_Days\"><\/span>Markets Soar as US and China Slash Tariffs for 90 Days<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>US stocks surged dramatically on Monday, May 12, 2025, following a breakthrough in US-China trade negotiations over the weekend. The temporary trade truce has sent major indexes soaring, with tech stocks leading the charge in what has become one of the most significant market rallies of 2025.<\/p>\n<p>As of midday, the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> (^GSPC)<\/b> has jumped 2.4%, while the <b><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average (^DJI)<\/b> has surged 2.2%, gaining over 900 points. The tech-heavy <b>Nasdaq Composite (^IXIC)<\/b> is outperforming both, rocketing up 3.2% and officially entering bull market territory\u2014up 21% from its April 8 low.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"US-China_Trade_Deal_Fuels_Market_Optimism\"><\/span>US-China Trade Deal Fuels Market Optimism<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The market rally comes after Treasury Secretary Scott Bessent announced that the US and China have agreed to temporarily reduce tariffs for 90 days. The US is slashing duties on most Chinese imports from 145% to 30%, while China is lowering its 125% tariff on US goods to 10%.<cscitation citation_id=\"task_1__1\"><\/cscitation> This significant reduction has relieved investors who had been concerned about the economic damage from escalating trade tensions.<\/p>\n<p>&#8220;This is very bullish news for the tech trade as the supply chain concerns will now be significantly reduced,&#8221; noted Wedbush analyst Dan Ives in a Monday report to investors.<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Giants_Lead_the_Charge\"><\/span>Tech Giants Lead the Charge<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The &#8220;Magnificent Seven&#8221; tech stocks are experiencing substantial gains, with Amazon (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AMZN\">AMZN<\/a>) leading the pack with a 7.6% increase. Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>) follows closely with a 7.8% jump, while Meta (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=META\">META<\/a>) has risen 7%. Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>), which manufactures approximately 90% of its iPhones in China, has climbed 6.5%. Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>), the AI chip leader, has gained 5%, while Alphabet (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=GOOGL\">GOOGL<\/a>) and Microsoft (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MSFT\">MSFT<\/a>) have added 2.86% and 1.6%, respectively.<cscitation citation_id=\"task_3__2\"><\/cscitation><cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<p>Other notable gainers include Nike (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NKE\">NKE<\/a>), up 8%, and delivery companies UPS and FedEx (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=FDX\">FDX<\/a>), which have jumped 6% and 7%, respectively. Chinese e-commerce giant Alibaba (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=BABA\">BABA<\/a>) has added 6%.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Commodities_Respond_to_Trade_News\"><\/span>Commodities Respond to Trade News<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The trade truce has also impacted commodity markets. <a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a> futures, which were trading near a record high of $3,500 an ounce last week, have fallen 3.1% to $3,240 as investors move away from safe-haven assets. Conversely, oil prices have continued their recent rally, with West Texas Intermediate futures up 3.3% at $63.05 per barrel.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Upcoming_Market_Events_to_Watch\"><\/span>Upcoming Market Events to Watch<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Investors will be closely monitoring several key economic reports this week that could provide insights into the initial inflationary effects of recent tariff policies. April&#8217;s Consumer Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CPI\">CPI<\/a>) report is due Tuesday, followed by retail sales and the Producer Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PPI\">PPI<\/a>) on Thursday.<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Earnings_Season_Continues\"><\/span>Earnings Season Continues<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Today marks a busy day for earnings reports, with over 1,000 companies scheduled to release their quarterly results. Notable reports today include Fox (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=FOXA\">FOXA<\/a>), which topped estimates on better-than-expected advertising revenue, and NRG Energy (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NRG\">NRG<\/a>).<cscitation citation_id=\"task_1__1\"><\/cscitation><cscitation citation_id=\"task_2__1\"><\/cscitation><\/p>\n<p>Later this week, investors will be watching for results from major companies including Sony (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=SONY\">SONY<\/a>), Alibaba (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=BABA\">BABA<\/a>), and Walmart (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=WMT\">WMT<\/a>).<cscitation citation_id=\"task_1__1\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Market_Outlook\"><\/span>Market Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While the 90-day tariff reduction has provided immediate relief to markets, analysts note that longer-term challenges remain. Ives pointed out that &#8220;there is more wood to chop around chip restrictions (H20\/Nvidia) and other issues in the AI trade that need to be addressed as part of a broader deal with US\/China.&#8221;<cscitation citation_id=\"task_3__1\"><\/cscitation><\/p>\n<p>Nevertheless, today&#8217;s rally represents a significant shift in market sentiment, with the tech sector&#8217;s return to bull market territory signaling renewed investor confidence despite ongoing geopolitical uncertainties.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Markets Soar as US and China Slash Tariffs for 90 Days US stocks surged dramatically on Monday, May 12, 2025, 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