Stocks surge after U.S. and China agree to 90 day tariff reduction, Apple up over 6%

• American governments and Chinese governments have announced a temporary relief for their trade war, although the fine details should still be eliminated within the next few months.

The world’s great powers have reached an agreement on trade war bruises – for at least 90 days. On Monday, American and Chinese governments announced that they had agreed to reduce a 90 -day mutual tariff while continuing to put details about a broader deal. The markets rose on the news, as the S&P 500 3.26 % gained.

Although Trump imposed a widespread tariff against all imports coming to the United States during his second term in his post, China was his primary goal. Trump has argued that the Chinese government did not do enough to stop the flow of fentanel to the United States

As part of a deal on Monday, both countries will reduce the so-called “mutual” tariffs from 125 % to 10 %, although customs tariffs by 20 % imposed by Trump related to Fantanel will remain-for example, the American drawings will be 30 %. Treasury Secretary Scott Besin praised the agreement, describing it to reporters on Monday as “great progress” between the two countries. He told CNBC in an interview that he does not want to “break the generalized association from China”, but rather is a more strategic approach to make us provide more flexible chains.

Stocks increase

While investors expected prosperous markets under Trump’s second term, his insistence on a severe tariff campaign against many trade partners in the United States has sent markets. The stocks fell significantly after the liberation day event in Trump in early April, where he presented the customs tariff plan. Although they recovered largely from the decline, the markets have not yet risen to the levels that have been achieved around its inauguration.

The Monday’s announcement-the latest reflection by the Trump administration of its primary commercial strategy-has risen to a two-month rise. Although BESSENT has argued that the administration gives priority to the manufacture of major industries such as steel and semi -conductors to the United States, most of the country’s economy still depends on imports from China. On Monday, Trump described the Monday’s deal as a “total reset”, with an addition to that it does not apply to specific sectors such as cars, steel and aluminum.

However, the long -awaited agreement represents a temporary pause, as investors are still concerned about more clarity. On Monday, Pesent CNBC told the two countries that the two countries will meet again in the next few weeks for a “more tulom agreement”. In a later interview with Bloomberg, he added that mutual definitions with China will likely not decrease less than 10 %.

Daniel Evz, a Wedbush analyst, argued on Monday that the deal means its highest levels in the market – and technical shares in particular – in 2025. Apple shares rose by 6.31 % on Monday, while Amazon 8.07 % rose.

The main question on the table remains for both countries: rare land minerals. Dxter Roberts, an oldest non -resident colleague in the Atlantic Council, argued luck China is likely to use the main resources, which are used in everything from smartphones to missiles, as a negotiations. “Control of this sector is one of the most important sources of influence over the United States and the world,” he said.

This story was originally shown on Fortune.com