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Actions were rugged again when negotiation began on Monday in the news that the United States and China had accepted a 90 -day break in important rates. Although the suspension is temporary, it was enough to feed the optimism of investors that a permanent solution will be worked out.
All the main rates were abruptly opened. From 9:40 AM ET, Dow Jones’s industrial average increased 1,025 points (2.5%), while the Nasdaq The index increased 621 points (3.5%) and the S&P 500 increased 145 (2.5%).
The profits do not completely erase the losses that the main rates have seen since President Donald Trump began his second administration, but the actions are approaching where they were on January 20. The Dow now has only a shy of 1,200 points from the place where it was on that date. Nasdaq is 95 points behind the starting point and the S&P 500 is 192 points below where it was at the beginning of Trump 2.0.
“I am happy to inform that we have advanced substantially between the United States and China in very important commercial talks,” said Treasury Secretary Scott Bessent told journalists on Sunday.
The agreement will reduce the functions of Chinese goods by up to 30% of the current 145%. Beijing said it would reduce its blanket rates to North -Americans from 125 to 10%. The reductions on both sides will come into force on Wednesday.
A joint statement of the White House and the China Ministry of Commerce said that the pause was made in the “spirit of mutual opening, continuous communication, cooperation and mutual respect”.
While the rates are certainly in the minds of investors, other factors could weigh the rally this week. The Department of Labor will publish on Tuesday its consumer price index and its producer price rate, which will provide more clues to inflation after the rates begin to take it last month.
This story originally presented to Fortune.com