crypto.news 2025-05-12 18:36:45

Dow Jones surges 1000 points After Trump announced new U.S. trade deal with China

The U.S. and China have agreed on a pause to punitive reciprocal tariffs, bringing rates to manageable levels. Monday was one of the strongest days for equity markets in recent memory, thanks to positive tariff news. The Dow Jones was trading at around 42,300 mid afternoon, increasing 1,078 points, or 2.61%. At the same time, the S&P 500 stood at 5,834, up 174 points or 3.08%. The tech-heavy Nasdaq had an even better day, trading at 18,683, gaining 754 points or 4.21%. You might also like: Bitcoin approaches $100K as Trump teases major trade deal with “big” country Stocks were up as U.S. President Donald Trump announced a 90-day pause to punitive U.S. tariffs on China. During that period, the tariff rate on Chinese goods will decrease from 145% to 30%. This figure includes a 10% base rate and an additional 20% tariff due to China’s alleged role in the fentanyl trade. At the same time, Chinese tariffs on U.S. goods will be 10%. Bitcoin and gold down, Amazon, Tesla up Trump has publicly praised the deal, calling the talks a “total reset” in trade relations with China. While the tariff pause is not a long-term solution, it suggests that longer-term trade talks are progressing in the right direction. Notably, Trump also stated that he might speak with Chinese President Xi Jinping later this week. You might also like: Trump’s tariffs threaten U.S. Bitcoin mining Among individual stocks, some of the biggest gainers were companies most affected by tariffs on China. Amazon was up 8.01%, Apple rose 6.39%, Tesla gained 6.48%, and Nvidia climbed 5.12%. All of these companies have significant ties to China. The stocks also helped with the dollar recovery. The dollar index was at 101.94, up 1.59%. Interestingly, both gold and Bitcoin (BTC) fell after the tariff news. BTC was down 1.43% in the last 24 hours, trading at $102,583, while gold fell 3.10% to $3,223.26 per ounce. Bitcoin’s drop alongside gold to its narrative as a hedge against inflation. Read more: From China to crypto: How Trump’s tariffs could reshape the world economy