ISTANBUL
US stocks opened the week with huge gains, as the US and China announced a trade deal that slashed mutual tariffs by 115% and granted a 90-day pause.
The Dow climbed 993.23 points, or 2.41%, to 42,242.61 as of 10 am EDT (1400GMT) Monday.
The S&P 500 soared 142.86 points, or 2.53%, to 5,804.38. The Nasdaq rose 616.94 points, or 3.38%, to 18,542.25.
The VIX volatility index, also called the “fear index,” fell 12.88% to 19.08, its lowest level since March 27.
Delegations from the world’s top two economies met in Geneva over the weekend, agreeing to a sweeping rollback of punitive tariffs for an initial 90-day period, and signaling a rare moment of relief in their protracted trade conflict and raising hopes for longer-term economic stability.
They said in a joint statement on Monday that they had agreed to a broad rollback of punitive tariffs for an initial 90 days.
The US will cut its tariffs on Chinese products from 145% to 30%, while China’s will be reduced from 125% to 10% by May 14.
Last week, US President Donald Trump also announced a trade agreement with the UK in which Washington agreed to reduce import taxes on a set number of British vehicles and allow some steel and aluminum into the country tariff-free.
