The US markets ended sharply higher on Monday following the US-China trade deal that drastically reduces the massive tariffs on each other's goods. The White House said the agreement calls for the US and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff. Meanwhile, the US will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent. Besides, investors remained optimistic as the White House indicated that the 34 percent reciprocal tariffs on US and Chinese goods will be suspended for 90 days beginning Wednesday, May 14.
On sectoral front, Semiconductor stocks turned in some of the market's best performances amid a broad-based rally, with the Philadelphia Semiconductor Index soaring by 7.0 percent to its best closing level in well over two months. Besides, substantial strength was also visible among transportation stocks, as reflected by the 7.0 percent spike by the Dow Jones Transportation Average. The average also reached a two-month closing high.
Dow Jones Industrial Average surged 1,160.72 points or 2.81 percent to 42,420.10, S&P 500 spiked 184.28 points or 3.26 percent to 5,844.19 and Nasdaq soared 779.43 points or 4.35 percent to 18,708.34.
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