The Trump administration just announced a massive trade deal between the United States and China, leaving markets elated. The United States agreed to lower its tariffs on China to 30% from 145% for 90 days. China will also decrease its tariffs on U.S. goods from 125% to 10% for 90 days. Although these tariff reductions are temporary for now, this news is very welcome for global trade. It provides a much stronger pathway toward tariffs coming down permanently.
The S&P 500 Index rose over 3% on Monday after news of the deal broke. This move now puts the index very close to being back in the green in 2025, with a total return of approximately -1%. A good handful of stocks in the index saw double-digit single-day percentage gains. However, not all stocks benefited. Approximately 80% of S&P 500 stocks rose on Monday, while the other 20% saw shares decline.
