Dow Jones surges over 1,000 points as US-China tariff truce sparks Wall Street rally

Wall Street opened sharply higher on May 12, 2025, following a major breakthrough in US-China trade talks. At the opening bell, the Dow Jones surged by 1030 points, the S&P 500 jumped 150 points, and the Nasdaq soared 650 points, after the announcement of a temporary tariff rollback.

Over the weekend in Geneva, US and Chinese officials issued a joint statement agreeing to a 90-day truce in their trade war. The US will cut tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on US goods from 125% to 10% during this period. The deal also includes suspending several non-tariff countermeasures and sets the stage for ongoing negotiations. This development comes after months of escalating tariffs that disrupted global supply chains and raised fears of a global recession.

Crude oil prices surged, with Brent crude crossing $65 per barrel, while gold prices fell sharply, dropping 2.5% to below $3,300 an ounce. The US dollar strengthened significantly, and US megacap tech stocks led the gains, with Nvidia, Amazon, Apple, and Tesla each rising more than 5% in premarket trading.

US Treasury Secretary Scott Bessent described the trade discussions as “very robust and productive,” highlighting the mutual interests of both nations in equitable trade. Investors have rushed back into US assets, driving a more than 3% surge in S&P 500 futures as hopes grow for a broader resolution to the trade conflict during this 90-day window.

Meanwhile, across the European market, by mid-afternoon in London, the Stoxx Europe 600 was up 1% with the UK’s FTSE 100 gaining 0.4% and France’s CAC 40 rising 1.45%. Germany’s DAX, however, pared earlier gains and was trading 0.1% lower.

In Asia, Hong Kong stocks led the regional rally, with the Hang Seng Index jumping 2.98% to close at 23,549.46-its highest level since late March. The Hang Seng Tech Index surged 5.16% to 5,447.35, also marking a multi-week high, as tech shares outperformed on renewed risk appetite911. On the mainland, China’s CSI 300 index climbed 1.16% to end at 3,890.60, reflecting broad-based gains across Chinese equities as markets responded positively to the easing of trade tensions.