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US stocks have clawed back their losses since Trump announced sweeping tariffs on April 2.
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Major indexes traded sharply higher Monday morning after weekend progress on US-China trade talks.
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The tariff rate on goods from China is set to come down to 30%, from 145%.
Stocks have recouped their losses since President Donald Trump’s “Liberation Day” tariffs tanked markets, with investors on Monday cheering a big de-escalation in the US-China trade war.
Major stock averages surged at the opening bell as investors reacted to the progress on trade negotiations with China, announced on Sunday. The S&P 500, which plummeted as much as 12% in the days following April 2, was up over 3% since the tariffs were announced. The Dow Jones Industrial Average, which fell as much as 10%, edged into positive territory on Monday, rising 0.19% since April 2.
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Dow Jones Industrial Average
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Nasdaq 100
Mega-cap tech soared Monday, with the Magnificent Seven up sharply. The biggest moves include:
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Nvidia: +5.4%
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Amazon: +9.6%
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Apple: +6.5%
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Tesla: +8.05%
The Nasdaq 100, which was the first to fully recover its losses since the historic tariffs-fueled sell-off, has also been bolstered by solid tech earnings in recent weeks. The index was up 17% through last Friday’s session from its low on April 8. It was on track to end Monday’s session in a bull market, which is defined as a 20% gain from the most recent low.
Here’s where major indexes stood around 2:10 p.m. ET on Monday:
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S&P 500: 5,832.47, up 3.05%
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Dow Jones Industrial Average: 42,343.15, up 2.65% (+1,093.77 points)
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Nasdaq 100: 20,819.45 up 3.78%
“The market reaction was quick and spectacular,” David Morrison, a senior market analyst at Trade Nation, wrote in a note. “It’s almost as if it never happened. Although we know it did. And investors appear to have forgotten that significant trade damage has already been inflicted.”
US-China trade tensions have been one of the biggest headwinds for the market since the tariff announcement last month. After Trump paused most “reciprocal” tariffs on April 9, he kept pressure up on China by increasing the tariff rate on goods from the country to 145%.
The agreement over the weekend is set to see the US slash tariffs on Chinese goods from 145% to 30%, while China plans to cut its tariffs on imports from the US from 125% to 10%.
“I would imagine in the next few weeks, we will be meeting again to get rolling on a more fulsome agreement,” Treasury Secretary Scott Bessent, who spoke with Chinese officials over the weekend, told CNBC on Monday.
Read the original article on Business Insider