US close: Stocks surge on temporary trade war truce with China
By Benjamin Chiou
Date: Monday 12 May 2025
(Sharecast News) - Wall Street stocks jumped on Monday with all three benchmark indices back above pre-Liberation Day levels after the US and China temporarily agreed to lower tariffs as they work on a new trade deal.
The Dow jumped 2.8% to 42,410.10, finishing at its highest mark since 26 March; the S&P 500 rose 3.3% to 5,844.19, its highest since 3 March; while the Nasdaq surged 4.4% to 18,708.34, its highest since 28 February.
The US and China are to significantly lower tariffs, it was confirmed on Monday, after a key agreement was struck in Geneva over the weekend. The world's two largest economies will now cut levies for the next 90 days. Washington will reduce tariffs on Chinese goods to 30% from 145%, while Beijing will lower duties to 10% from 125%.
Speaking at a press conference in Geneva, US Treasury secretary Scott Bessent said: "We want more balanced trade, and I think both sides are committed to achieving that."
Global stock markets reacted positively to the news, along with the dollar, while WTI crude gained 1.5% to $61.95 a barrel. However, gold, a safe-haven asset that has soared in recent weeks, fell back 3.5% to $3,228 an ounce.
The news has "given investors right around the globe a chance to exhale - though not to relax completely", according to AJ Bell's head of financial analysis Danni Hewson, who pointed to the fact that the S&P 500 and Nasdaq are both still well below levels seen earlier in the year with investor confidence still fragile.
"It is hoped that after the 90 days current tariff levels will either be maintained or reduced further. But there are no guarantees, and continued uncertainty creates a quandary for many US companies," she said.
No major economic data was scheduled for release on Monday, with eyes starting to turn to the all-important US inflation report on Tuesday. According to consensus estimates, the CPI index is expected to have risen by 0.3% in April after a 0.1% decline in March, though both the annual rates of headline and core inflation are tipped to have held steady at 2.4% and 2.8% respectively.
Market movers
Banking stocks were rising strongly on improved economic prospects following the US-China trade talks, including Bank of America, Citigroup, Goldman Sachs, Wells Fargo and JPMorgan.
Tech heavyweights Apple, Nvidia, Meta Platforms, Hewlett Packard and Microsoft were benefitting from a return in risk appetite, while fashion and sporting goods names like Nike, Lululemon, Footlocker and Estée Lauder jumped on an improved supply chain outlook.
Pharma stocks initially fell on the news that Trump would sign an executive order aimed to slash prescription drug prices, but share prices recovered quickly after the restrictions were deemed softer than expected. Moderna, Merck and Eli Lilly all finished higher.
Meanwhile, US-listed shares of Canada's Pan American Silver slumped 16% after the company agreed to acquire smaller rival MAG Silver in a $2.1bn deal.
Dow Jones - Risers
Nike Inc. (NKE) $62.29 7.34%
Merck & Co. Inc. (MRK) $81.17 5.87%
Apple Inc. (AAPL) $210.79 5.59%
3M Co. (MMM) $150.55 5.42%
Caterpillar Inc. (CAT) $343.48 5.20%
Dow Chemical Co. (DOW) $31.16 5.09%
American Express Co. (AXP) $298.55 5.06%
Salesforce.Com Inc. (CRM) $287.92 4.87%
Intel Corp. (INTC) $22.18 4.45%
Walt Disney Co. (DIS) $110.47 4.29%
Dow Jones - Fallers
Coca-Cola Co. (KO) $69.25 -1.40%
Verizon Communications Inc. (VZ) $42.96 -1.40%
Travelers Company Inc. (TRV) $267.18 -0.63%
McDonald's Corp. (MCD) $310.55 -0.56%
Unitedhealth Group Inc. (UNH) $378.90 -0.50%
Johnson & Johnson (JNJ) $154.54 -0.05%
S&P 500 - Risers
NRG Energy Inc. (NRG) $149.23 26.21%
Nektar Therapeutics (NKTR) $0.71 19.11%
Stanley Black & Decker Inc. (SWK) $72.68 15.73%
Kohls Corp. (KSS) $7.51 12.82%
Masco Corp. (MAS) $68.76 11.37%
Foot Locker Inc. (FL) $13.43 10.57%
Macerich Co (MAC) $16.49 10.41%
Expedia Group Inc. (EXPE) $167.25 9.98%
Ipg Photonics Corp. (IPGP) $64.81 9.77%
Carnival Corp. (CCL) $22.13 9.61%
S&P 500 - Fallers
Newmont Corporation (NEM) $50.83 -5.93%
Amer Water Works (AWK) $138.55 -5.65%
American Tower Corp (Reit) (AMT) $207.56 -5.48%
CIGNA Corp. (CI) $314.53 -5.31%
Crown Castle International (CCI) $100.45 -4.30%
CME Group Inc. (CME) $270.47 -4.26%
Altria Group Inc. (MO) $57.08 -4.17%
Kroger Co. (KR) $68.87 -3.94%
Electronic Arts Inc. (EA) $149.27 -3.88%
Consolidated Edison Inc. (ED) $103.87 -3.84%
Nasdaq 100 - Risers
Expedia Group Inc. (EXPE) $167.25 9.98%
Wynn Resorts Ltd. (WYNN) $95.16 9.25%
Texas Instruments Inc (TXN) $187.28 9.07%
Lam Research Corp. (LRCX) $82.25 8.24%
Micron Technology Inc. (MU) $92.29 8.07%
Tesla Inc (TSLA) $318.38 8.04%
J.B. Hunt Transport Services Inc. (JBHT) $148.72 7.85%
KLA-Tencor Corp. (KLAC) $760.47 7.66%
Amazon.Com Inc. (AMZN) $208.64 7.48%
Microchip Technology Inc. (MCHP) $60.96 7.24%
Nasdaq 100 - Fallers
Electronic Arts Inc. (EA) $149.27 -3.88%
Netflix Inc. (NFLX) $1,110.00 -2.87%
T-Mobile Us, Inc. (TMUS) $240.32 -2.79%
Vodafone Group Plc ADS (VOD) $9.07 -2.26%
Liberty Global plc Series A (LBTYA) $9.23 -1.91%
O'Reilly Automotive Inc. (ORLY) $1,339.61 -1.77%
Check Point Software Technologies Ltd. (CHKP) $217.23 -1.73%
eBay Inc. (EBAY) $69.16 -1.51%
Mondelez International Inc. (MDLZ) $65.83 -1.39%
Verisk Analytics Inc. (VRSK) $303.65 -1.28%
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