Dow Jones surges 1,100 pts as trade tensions ease

US stocks surged sharply during Monday’s session after the US and China agreed to reduce reciprocal tariffs. The deal eases recession fears and paves the way for a permanent agreement to end trade tensions.

At the close of today’s session, the Dow Jones Industrial Average hiked 2.80%, gaining 1,160 points to reach 42,410 points.

The S&P 500 rose 3.25% or 184 points to 5,844 points, while the Nasdaq Composite jumped 4.35%, adding 779 points to settle at 18,708 points.

The Stoxx Europe 600 index climbed 1.2% to 544.49 points, driven by a nearly 5% gain in the mining sector.

The UK’s FTSE 100 increased 0.6% to 8,604 points, Germany’s DAX edged up 0.3% to a record close at 23,566 points, and France’s CAC 40 rose 1.35% to 7,850 points.

Japan’s Nikkei 225 advanced 0.4% to 37,644 points, while the broader TOPIX index added 0.3%, closing at 2,742 points.

Brent crude futures for July delivery rose by 1.65%, or $1.05, settling at $64.96 per barrel.

Meanwhile, WTI (Nymex) crude futures for June delivery gained 1.50%, or 93 cents, closing at $61.95 per barrel.

Gold futures for June delivery dropped sharply by 3.5%, or $116, to close at $3,228 per ounce.

Earlier in the day, the US announced a reduction in tariffs on Chinese goods to 30% from 145%, while China cut tariffs on U.S. imports to 10% from 125%. The reductions will remain in effect for 90 days, following negotiations held in Switzerland over the weekend.

US President Donald Trump stated that China will open its markets to American companies and suspend customs barriers on US imports. He added that he may speak with Chinese President Xi Jinping later this week.