Market rallies after news of U.S.

U.S. and China have agreed to temporarily ease tariffs, causing a surge in stock prices on Monday. The major indexes saw gains of over 2% in early trading, with the S&P 500 rising by 2.8%, the Dow Jones Industrial Average by 2.5%, and the Nasdaq Composite by 3.7%. Tech companies are particularly relieved as the steep Chinese tariffs could have disrupted their supply chains and led to higher prices for consumers. The tariff reduction agreement, negotiated over the weekend in Switzerland, will see tariffs lowered by 115% for 90 days starting May 14. This move will bring the U.S. tariff on Chinese imports down to 30% and China’s rate on American goods down to 10%. Tech stocks like Nvidia and Amazon, which heavily rely on imports from China, saw positive gains following the news. The announcement also boosted the value of the U.S. dollar, with the dollar index increasing by over 1% to 101.5.