Wall Street Cheers as US & China Slash Tariffs: Is the Trade War Nightmare Over?

US-China Tariff Deal Boosts Market: Dow surges 1160 points after tariff reduction agreement. Tech stocks soar, but concerns about long-term economic impact remain.

Headline: Dow closes up 1,160 points as US and China agree to slash tariffs

• Market Surge: The Dow Jones Industrial Average closed up 1,160 points (2.8%), the S&P 500 jumped 3.2%, and the Nasdaq increased 4.3%.
• Key Agreement: The U.S. and China agreed to slash tariffs for 90 days while negotiating a wider trade deal.
• Tariff Reductions: The U.S. agreed to cut tariffs on Chinese goods from 145% to 30%, while China committed to reduce tariffs on U.S. products from 125% to 10%.
• Impact on Companies:
  • Meta and Amazon each climbed about 8%.
  • Starbucks increased more than 6%.
  • Tesla jumped nearly 7%.
  • Best Buy surged more than 4%.
• Expert Analysis: Deutsche Bank stated, "Increasingly, it’s as if the last 6 weeks have been a bad dream and never actually happened."
• UBS Economist: Jonathan Pingle (UBS) estimated the reduction in U.S. levies on China would bring average U.S. tariffs down from 24% to 14%.
• Lingering Concerns: Carol Schleif (BMO Private Wealth) noted that "Base level tariffs are still substantially higher than where they started, with some level of damage likely to work its way into the economic data in the months to come."
• Positive Outlook: Despite lingering concerns, Schleif added that the U.S.-China agreement is "exactly what the stock market was hoping to see.