{"id":49440,"date":"2025-05-12T13:28:55","date_gmt":"2025-05-12T18:28:55","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/"},"modified":"2025-05-12T13:28:55","modified_gmt":"2025-05-12T18:28:55","slug":"market-soars-as-u-s-china-reach-temporary-tariff-agreement","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/","title":{"rendered":"Market Soars as U.S.-China Reach Temporary Tariff Agreement"},"content":{"rendered":"<p>Based on the information gathered, I&#8217;ll now write the market recap article focusing on the key points requested.<\/p>\n<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\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/#Major_Indexes_Surge_on_Trade_Deal_News\" >Major Indexes Surge on Trade Deal News<\/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\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/#Tech_Stocks_Lead_Market_Rally\" >Tech Stocks Lead Market Rally<\/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\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/#Retail_Sector_Benefits_from_Tariff_Relief\" >Retail Sector Benefits from Tariff Relief<\/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\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/#Energy_Sector_News\" >Energy Sector 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\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/#Pharmaceutical_Stocks_Under_Pressure\" >Pharmaceutical Stocks Under Pressure<\/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\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/#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-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-soars-as-u-s-china-reach-temporary-tariff-agreement\/49440\/#Market_Outlook\" >Market Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Major_Indexes_Surge_on_Trade_Deal_News\"><\/span>Major Indexes Surge on Trade Deal News<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The U.S. stock market experienced a dramatic rally on Monday, May 12, 2025, as investors celebrated a breakthrough in U.S.-China trade relations. The Nasdaq Composite led the charge with an impressive gain of approximately 3.5%, while the <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&#038;P 500<\/a> and <a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average both climbed more than 2%.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>By mid-day trading, the Dow was up over 800 points, continuing its momentum from futures trading that indicated a strong opening. The S&#038;P 500 rose 2.49%, rebounding strongly from last week when all three major indexes posted their first losing week in three.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>The market surge came after U.S. Treasury Secretary Scott Bessent announced that the U.S. and China had agreed to temporarily slash tariffs following weekend negotiations in Switzerland. The agreement reduces U.S. tariffs on Chinese goods to 30% (down from 145%) and Chinese tariffs on U.S. imports to 10% (down from 125%) for a 90-day period.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Tech_Stocks_Lead_Market_Rally\"><\/span>Tech Stocks Lead Market Rally<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Technology stocks with significant exposure to China were among the day&#8217;s biggest winners. Apple (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AAPL\">AAPL<\/a>), which manufactures the majority of its iPhones in China, saw its shares jump more than 6% in morning trading.<cscitation citation_id=\"task_4__2\"><\/cscitation> Nvidia (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=NVDA\">NVDA<\/a>), a key player in the AI chip market with substantial business in China, advanced more than 4%.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<p>Tesla (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=TSLA\">TSLA<\/a>), which has faced declining sales in China amid increasing competition from local automakers, surged more than 7% as investors anticipated improved business conditions in the world&#8217;s largest electric vehicle market.<cscitation citation_id=\"task_4__2\"><\/cscitation> Other tech giants also benefited, with Amazon (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=AMZN\">AMZN<\/a>) climbing 7% and Meta Platforms (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=META\">META<\/a>) gaining more than 5%.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Retail_Sector_Benefits_from_Tariff_Relief\"><\/span>Retail Sector Benefits from Tariff Relief<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Retailers heavily dependent on Chinese imports saw substantial gains following the tariff announcement. RH jumped 17%, Best Buy (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=BBY\">BBY<\/a>) rose 10%, and Five Below rallied 11% as investors anticipated lower costs for imported goods.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<p>U.S.-listed shares of Chinese companies also rose significantly, with e-commerce giants PDD Holdings, Alibaba (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=BABA\">BABA<\/a>), and JD.com (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=JD\">JD<\/a>) climbing more than 8%, 7%, and nearly 6%, respectively.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<p><b>Today&#8217;s market rally represents a significant reversal from recent weeks of volatility triggered by President Trump&#8217;s initial announcement of sweeping tariffs on all U.S. trading partners.<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Energy_Sector_News\"><\/span>Energy Sector News<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In notable corporate news outside the tariff developments, NRG Energy saw its shares increase almost 9% after announcing plans to acquire a power portfolio from LS Power for $12 billion. The deal, which includes several natural gas generation facilities across nine states, is expected to close in the first quarter of next year and will double NRG&#8217;s power generation capacity.<cscitation citation_id=\"task_4__2\"><\/cscitation><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Pharmaceutical_Stocks_Under_Pressure\"><\/span>Pharmaceutical Stocks Under Pressure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While most sectors rallied, pharmaceutical companies faced pressure after President Donald Trump announced plans to sign an executive order aimed at reducing prescription drug costs &#8220;almost immediately, by 30% to 80%&#8221; by implementing a &#8220;most favored nation&#8221; pricing model that would match prices paid by other countries.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Eli Lilly (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=LLY\">LLY<\/a>) shares declined about 3%, while Amgen and Pfizer (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=PFE\">PFE<\/a>) shares each dropped more than 2%. Johnson &#038; Johnson (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=JNJ\">JNJ<\/a>) and Merck (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=MRK\">MRK<\/a>) also saw their shares fall more than 2%.<cscitation citation_id=\"task_4__2\"><\/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 releases this week that could provide insights into how the changing tariff landscape might impact the economy. The Consumer Price Index (<a href=\"https:\/\/thestockmarketwatch.com\/stock\/?stock=CPI\">CPI<\/a>) data for April will be released on Tuesday, offering important information about inflation trends following the initial tariff announcements.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<p>Additionally, U.S. retail sales and industrial production figures for April will be released this week, providing early indications of whether GDP could decline again in the second quarter after falling in the first quarter. A second consecutive quarterly decline would constitute a technical recession.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<p>The University of Michigan&#8217;s preliminary consumer sentiment data for May will also be closely watched after household confidence slumped and inflation expectations spiked in recent surveys.<cscitation citation_id=\"task_3__3\"><\/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><b>The 90-day tariff reduction agreement provides temporary relief for markets, but uncertainty remains about what will happen when the pause expires on July 8.<\/b> Commerce Secretary Howard Lutnick indicated on Sunday that the 10% baseline tariff rate on imports from other countries is likely to &#8220;be in place for the foreseeable future,&#8221; echoing President Trump&#8217;s earlier comments.<cscitation citation_id=\"task_2__2\"><\/cscitation><\/p>\n<p>Market analysts will be watching for signs of how these tariff developments might affect Federal Reserve policy. The Federal Open Market Committee held interest rates steady at 4.25-4.5% at their May meeting despite GDP falling in the first quarter, citing concerns over the potential for tariffs to push inflation higher in the coming months.<cscitation citation_id=\"task_3__3\"><\/cscitation><\/p>\n<p>As trading continues this week, investors will be balancing optimism over the temporary trade agreement with caution about longer-term economic impacts and upcoming data releases that could signal the direction of both inflation and economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Based on the information gathered, I&#8217;ll now write the market recap article focusing on the key points requested. Major Indexes [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[94],"tags":[3712,4,3741,34,3743,3750,225,337,376,391,633,1067,3698],"class_list":["post-49440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-update","tag-cpi","tag-tsla","tag-meta","tag-pfe","tag-baba","tag-jd","tag-aapl","tag-lly","tag-jnj","tag-amzn","tag-nvda","tag-mrk","tag-bby"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/49440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=49440"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/49440\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50312"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=49440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=49440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=49440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}