Wall Street posted sharp gains Monday after the United States and China reached a breakthrough agreement to pause new tariffs for 90 days, lifting investor sentiment and boosting markets across the board.
The Dow Jones Industrial Average climbed 1,083 points to close at 42,332.25, while the NASDAQ Composite soared 752.55 points to 18,681.47. The S&P 500 rose 174.27 points to 5,834.18, and the NYSE Composite added 369.85 points to finish at 19,689.05.
Major Indices – May 12, 2025 (2:00 PM ET)
| Index | Closing Value | Change |
|---|---|---|
| Dow Jones | 42,332.25 | +1,083.00 |
| NASDAQ | 18,681.47 | +752.55 |
| NYSE | 19,689.05 | +369.85 |
| S&P 500 | 5,834.18 | +174.27 |
The rally was driven by news of a temporary truce in the ongoing trade conflict between Washington and Beijing. The agreement, announced earlier Monday, halts additional tariffs for three months and opens the door for renewed negotiations on technology transfer, supply chain stability, and market access.
“The Chamber welcomes the news of both nations pulling back from embargo-level tariffs and establishing a new framework to address ongoing trade relations and disputes,” said John Murphy, Senior Vice President at the U.S. Chamber of Commerce, as noted by the U.S. Chamber.
Leading Tech Stocks – May 12, 2025 (2:00 PM ET)
| Ticker | Company | Price | Change |
|---|---|---|---|
| TSLA | Tesla, Inc. | $318.32 | +20.06 |
| AAPL | Apple Inc. | $210.75 | +12.48 |
| GOOG | Alphabet Inc. | $159.64 | +5.25 |
| MSFT | Microsoft Corp. | $447.05 | +8.32 |
| NVDA | NVIDIA Corp. | $122.80 | +6.14 |
| AMZN | Amazon.com, Inc. | $208.47 | +15.41 |
Shares of companies with deep exposure to Asian markets and global supply chains were among the biggest gainers. Tesla led the rally with a $20.06 increase, closing at $318.32, while Apple, Amazon, and NVIDIA also posted solid gains.
Global markets followed suit, with major indices in Europe and Asia rising sharply during overnight and early morning trading.
Still, analysts caution that the 90-day pause is only a temporary reprieve and not a resolution. Talks are expected to continue throughout the summer, with negotiators aiming to resolve disputes over intellectual property protections and state-backed industrial subsidies.
“This is not a deal—it’s a timeout,” said Marcus Hall, an economist at Capital Forum. “Markets needed breathing room, and they got it, but the hard part comes next.”
As Wall Street eyes future trade headlines, investors will be watching closely for signs of long-term progress. Any signs of faltering could quickly reverse gains, while additional diplomatic breakthroughs may keep the rally going.
For now, the mood on the Street is bullish—a reflection of cautious optimism and renewed faith in diplomacy.
Full coverage: Virginia Times – U.S. and China Agree to 90-Day Tariff Pause
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