New Delhi— Wall Street roared to life on Monday, with major U.S. indexes posting sharp gains after the United States and China reached a long-anticipated agreement to ease tariffs, signaling a truce in their prolonged trade war.
The Dow Jones Industrial Average surged 1,037.13 points, or 2.51%, closing at 42,286.51. The S&P 500 jumped 150.24 points, or 2.65%, to 5,810.15, while the tech-heavy Nasdaq soared 621.90 points, or 3.47%, ending at 18,550.82.
Investor optimism surged following the announcement that both countries had agreed to roll back most of the tariffs that had strained global trade and raised fears of a potential U.S. recession. Economists had warned that prolonged tariffs could lead to price hikes and product shortages for American consumers.
The rally extended beyond equities. Crude oil prices climbed on expectations of stronger demand, the U.S. dollar firmed against major currencies, and Treasury yields rose as investors shifted away from safe-haven assets.
The positive momentum spilled over into global markets. Indian stock indexes Sensex and Nifty logged their biggest single-day gains in four years, lifted by both the global trade breakthrough and easing regional tensions, including a ceasefire understanding between India and Pakistan and progress in Russia-Ukraine peace negotiations. Indian investors gained over ₹16 lakh crore in market value during the session.
Analysts say the easing of tensions between major economies has restored risk appetite among investors, who had been wary amid rising geopolitical and trade-related uncertainty. (Source: IANS)
