The S&P 500 logged its biggest gain in over a month after American and Chinese officials signaled a de-escalation in the trade war between the world’s two largest economies.
Stocks swung sharply higher on Monday after the United States and China agreed to temporarily lower tariffs on each other, a significant step-back in the trade war that’s roiled markets for nearly six weeks.
The S&P 500 gained 3.3 percent, its best day since April 9, when a huge rally was spurred by Mr. Trump pausing his “reciprocal” tariffs on all countries except China. The tech-heavy Nasdaq climbed even higher, rising more than 4 percent.
The apparent thaw in relations between the United States and China, even if temporary, was the latest concession offered by the Trump administration, which had sent stocks tumbling last month after announcing unexpectedly high tariffs on dozens of countries.
The S&P 500 had dropped steeply after Mr. Trump announced sweeping tariffs in early April, but it has since rebounded, recovering all of those losses as various exemptions and pauses to tariffs were announced.
In a joint statement, released on Monday after weekend talks in Geneva, the United States and China said they had reached an agreement to reduce their respective tariffs for 90 days while trade negotiations continue.
