The S&P 500 Index ($SPX) (SPY) Monday closed up +3.26%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +2.81%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +4.02%. June E-mini S&P futures (ESM25) are up +3.32%, and June E-mini Nasdaq futures (NQM25) are up +4.03%.
Stock indexes rallied sharply on Monday, with the S&P 500 and Nasdaq 100 posting 2-1/4 month highs and the Dow Jones Industrials posting a 1-1/2 month high. Stocks, the dollar, and asset markets surged Monday after China and the US agreed to cut tariffs and de-escalate their trade war. On Monday, risk-on sentiment returned to asset markets after Treasury Secretary Bessent said trade talks with China were "very robust and productive." The US and China agreed to temporarily lower tariffs on each other's products for three months, with the US reducing its tariffs on China from 145% to 30% and China reducing its duties from 125% to 10%. Treasury Secretary Bessent Said that neither nation wants to "decouple" and that further talks might lead to "purchasing agreements" by China.
