US-China 90-Day Trade Truce

The United States and China announced a 90-day trade truce, agreeing to temporarily reduce tariffs on each other's goods. The United States will cut tariffs on Chinese goods to 30% from 145%, while China will reduce tariffs on U.S. goods to 10% from 125%. This development, following negotiations in Geneva, Switzerland, aims to provide time for further talks and prevent a potential recession that economists had warned about. The news sparked an ebullient mood across Wall Street, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all seeing significant gains. Petroleum prices jumped, the United States strengthened, and Treasury yields rose as expectations for United States — Federal Reserve interest rate cuts diminished. Companies like Lululemon, Nike, Inc., Carnival Corporation, Norwegian Cruise Line Holdings, Best Buy, and Amazon (company) saw their stocks rise due to anticipated lower costs and increased consumer spending. Separately, India and Pakistan agreed to a truce, and the International Monetary Fund disbursed a bailout package to Pakistan, contributing to positive market movements in those regions.