Stock Market Live UpdatesMarkets Soar as US and China Slash Tariffs for 90 Days
US stocks surged dramatically on Monday, May 12, 2025, following a breakthrough in US-China trade negotiations over the weekend. The temporary trade truce has sent major indexes soaring, with tech stocks leading the charge in what has become one of the most significant market rallies of 2025.
As of midday, the S&P 500 (^GSPC) has jumped 2.4%, while the Dow Jones Industrial Average (^DJI) has surged 2.2%, gaining over 900 points. The tech-heavy Nasdaq Composite (^IXIC) is outperforming both, rocketing up 3.2% and officially entering bull market territory—up 21% from its April 8 low.
US-China Trade Deal Fuels Market Optimism
The market rally comes after Treasury Secretary Scott Bessent announced that the US and China have agreed to temporarily reduce tariffs for 90 days. The US is slashing duties on most Chinese imports from 145% to 30%, while China is lowering its 125% tariff on US goods to 10%.
“This is very bullish news for the tech trade as the supply chain concerns will now be significantly reduced,” noted Wedbush analyst Dan Ives in a Monday report to investors.
Tech Giants Lead the Charge
The “Magnificent Seven” tech stocks are experiencing substantial gains, with Amazon (AMZN) leading the pack with a 7.6% increase. Tesla (TSLA) follows closely with a 7.8% jump, while Meta (META) has risen 7%. Apple (AAPL), which manufactures approximately 90% of its iPhones in China, has climbed 6.5%. Nvidia (NVDA), the AI chip leader, has gained 5%, while Alphabet (GOOGL) and Microsoft (MSFT) have added 2.86% and 1.6%, respectively.
Other notable gainers include Nike (NKE), up 8%, and delivery companies UPS and FedEx (FDX), which have jumped 6% and 7%, respectively. Chinese e-commerce giant Alibaba (BABA) has added 6%.
Commodities Respond to Trade News
The trade truce has also impacted commodity markets. Gold futures, which were trading near a record high of $3,500 an ounce last week, have fallen 3.1% to $3,240 as investors move away from safe-haven assets. Conversely, oil prices have continued their recent rally, with West Texas Intermediate futures up 3.3% at $63.05 per barrel.
Upcoming Market Events to Watch
Investors will be closely monitoring several key economic reports this week that could provide insights into the initial inflationary effects of recent tariff policies. April’s Consumer Price Index (CPI) report is due Tuesday, followed by retail sales and the Producer Price Index (PPI) on Thursday.
Earnings Season Continues
Today marks a busy day for earnings reports, with over 1,000 companies scheduled to release their quarterly results. Notable reports today include Fox (FOXA), which topped estimates on better-than-expected advertising revenue, and NRG Energy (NRG).
Later this week, investors will be watching for results from major companies including Sony (SONY), Alibaba (BABA), and Walmart (WMT).
Market Outlook
While the 90-day tariff reduction has provided immediate relief to markets, analysts note that longer-term challenges remain. Ives pointed out that “there is more wood to chop around chip restrictions (H20/Nvidia) and other issues in the AI trade that need to be addressed as part of a broader deal with US/China.”
Nevertheless, today’s rally represents a significant shift in market sentiment, with the tech sector’s return to bull market territory signaling renewed investor confidence despite ongoing geopolitical uncertainties.