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Date: 15-may-2025 | By: Nuztrend Team
Wall Street futures surged early Tuesday after the U.S. and China agreed to a temporary truce on escalating trade tariffs. The unexpected development lifted investor sentiment and sparked a ripple of gains across global equity markets, with futures for major U.S. indexes showing strong pre-market performance.
As of the latest data, Dow Jones Industrial Average futures rose over 280 points, while S&P 500 and Nasdaq 100 futures were up by 1.1% and 1.3% respectively. The market rally comes as traders interpret the truce as a signal that renewed cooperation may prevent further economic strain between the world’s two largest economies.
The breakthrough followed several weeks of tense diplomatic and economic exchanges. Both Washington and Beijing agreed to pause the implementation of new tariffs for the next 60 days, giving negotiators time to work out a broader trade framework. While not a permanent solution, the move has been widely seen as a de-escalation — and markets responded swiftly.
Global investors had been on edge amid fears that a prolonged trade war could choke economic growth, disrupt supply chains, and erode business confidence. With the truce in place, some of those concerns have temporarily eased.
Beyond the U.S., the positive momentum spread to global markets. In Asia, the Hang Seng Index in Hong Kong jumped 2.3%, while China’s CSI 300 index rose 1.8%. European markets also opened higher, with Germany’s DAX and France’s CAC 40 both posting gains of over 1% in early trading.
Commodities joined the rally as well. Oil prices edged higher, with Brent crude rising 1.2% to just above $84 per barrel, and safe-haven assets like gold saw slight declines as investor appetite for risk returned.
Technology and manufacturing stocks — both heavily impacted by past tariff measures — are expected to lead the gains. Companies like Apple, Nvidia, and Intel, which rely on global supply chains and Chinese demand, saw notable movement in pre-market trading. Industrial giants such as Caterpillar and Boeing also posted early gains.
The semiconductor sector, which has been particularly sensitive to U.S.–China relations, is expected to rebound, with traders eyeing chipmakers like AMD, Qualcomm, and Micron for potential upside.
While the markets are cheering the truce, many analysts remain cautious. The 60-day pause offers breathing room, but it does not address the structural tensions behind the dispute — including concerns over intellectual property, technology transfer, and state subsidies.
Any signs of renewed hostility or breakdown in negotiations could quickly reverse gains. Still, for now, investors are focusing on the positive, hopeful that this move could lay the groundwork for longer-term stability in trade relations.
With Wall Street futures rising and global markets rebounding, the short-term outlook for equities appears more optimistic than in recent weeks. The U.S.–China tariff truce may be temporary, but it has provided enough breathing room for investors to re-engage with risk assets.
As earnings season continues and macroeconomic data rolls in, much will depend on whether the goodwill between Washington and Beijing can be sustained. For now, though, the markets are riding a wave of relief — and watching closely for the next move.
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