Stocks increase after the United States and China agree to reduce 90 -day rates

• United States and Chinese governments announced temporary relief in their trade war, although the exact details are yet to be marked in the coming months.

The two superpowers in the world have reached an agreement on their forceful trade war, for at least 90 days. United States and Chinese governments on Monday announced They had agreed to reduce the reciprocal rates for 90 days, as they continue to give details on a broader agreement. The markets increased the news, with the S&P 500 gaining 3.26%.

Although Trump has imposed wide rates against all imports arriving in the United States during its second term, China has been its main objective. Trump has it argued that the Chinese government has not done enough to stop the flow of Fentanyl in the United States

As part of Monday’s agreement, both countries will lower Its so-called “reciprocal” rates of 125% to 10%, although a 20% rate imposed by Trump related to the Fentanil, which is an American indication of 30%, will be maintained. Treasure Secretary, Scott Bessent, greeted the agreement, describing journalists on Monday as a “substantial progress” between the two countries. Told CNBC in a interview It does not want a “widespread decapacation of China”, but a more strategic approach to making supply chains more resistant.

Stocks increase

Although investors hoped that the expanding markets would be under Trump’s second term, their insistence on a strong fare campaign against many of the best commercial partners in the United States has sent the markets. The stocks fell dramatically after the Trump Liberation Day event in early April, where he introduced the fare plan. Although they have been largely recovered from immersion, markets have not yet risen to the levels reached around their inauguration.

The announcement on Monday – the last investment of the Trump administration of its initial commercial strategy – involved the actions up to a maximum of two months. Although Bessent has argued that the administration prioritizes the expenditure of the manufacture of key industries such as steel and semiconductors in the United States, much of the country’s economy continues to depend on China’s imports. Monday, Trump described The agreement on Monday as a “total reset”, at the same time adding that it does not apply to specific sectors such as cars, steel and aluminum.

However, the long -awaited agreement represents a temporary pause, with the investors still eager to get more clarity. Unpleasant said to CNBC On Monday that the two countries will meet again in the coming weeks for a “more complete agreement”. He added in a later interview with Bloomberg that reciprocal rates with China will probably not fall below 10%.

Wedbush Daniel Ives analyst argued On Monday that the agreement meant new highs for the market – and in particular technological actions – they are possible for 2025. ”These massive rates at this time probably remove a recession from the table for now,” he wrote. Apple shares increased 6.31% on Monday while Amazon increased by 8.07%.

A key question is still on the table for the two countries: rare ground minerals. Dexter Roberts, a senior scholarship not resident in the Atlantic Council, argued into Fortune China will probably use key resources, used in everything, from smartphones to missiles, as a negotiating chip. “Mastering this sector is probably one of its most important sources in the United States and the world,” he said.

This story originally presented to Fortune.com