Wall Street exploded higher Monday after a stunning twist in U.S.-China relations: President Donald Trump, long seen as a hardliner on trade, brokered a surprise deal to slash tariffs in a move that sent stocks skyrocketing and ignited talk of a new bull run.
The Dow Jones Industrial Average surged over 1,100 points, its best single-day gain in months. The S&P 500 and Nasdaq weren’t far behind, rallying 3.3% and 4.4%, respectively. The spark? A deal that some are calling “economic diplomacy,” others see as pure election-year calculus.
The Deal That Shocked the Street
After years of bruising tariffs and saber-rattling, Trump flipped the script. The U.S. will drop most tariffs on Chinese goods from a punishing 145% down to 30%, while China will slash its retaliatory tariffs from 125% to just 10%.
Tariffs on steel and aluminum remain in place—perhaps as a bargaining chip—but the sudden pivot was enough to send a message: America and China aren’t decoupling anytime soon.
“We’re back at the table—and talking about buying American,” said Treasury Secretary Scott Bessent, who also noted China may begin purchasing more U.S. goods, particularly in manufacturing and agriculture. Fentanyl controls were also part of the talks, adding a geopolitical edge to the deal.
The timing? Just months before the election. Coincidence—or strategy?
Tech Titans Go Vertical
Wall Street cheered, but Silicon Valley practically erupted.
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Amazon (AMZN) jumped 8%, reclaiming its 200-day moving average—a bullish technical move investors hadn’t seen since March.
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Apple (AAPL) soared 6.3%, touching a key resistance level at the 50-day line.
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Nvidia (NVDA) popped 5.4%, closing at its highest since February as the AI boom keeps Wall Street drooling.
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Tesla (TSLA) continued its comeback with a 5.7% gain—now riding a four-day winning streak, though still down 35% from its highs.
Is Big Tech finally back—or is this just a short squeeze riding on a political headline?
Rising Oil, Rising Yields—and Rising Optimism
Oil prices climbed to $62 a barrel, a sign that demand may finally be catching up with supply again. The 10-year Treasury yield rose to 4.45%, suggesting investors are rotating back into risk-on territory.
Retail sales data and inflation numbers due later this week could confirm whether this rally has real legs—or whether the market’s getting ahead of itself again.
But many see the writing on the wall: this trade deal could be the starting gun for a new chapter of economic growth and international cooperation, just when the world needed it most.
The Quiet Comeback of U.S. Consumers and Companies
While everyone’s talking about tariffs, there’s a quieter—and arguably more important—story unfolding: U.S. consumers are still spending, and companies are starting to surprise to the upside.
Upcoming earnings from Sea Ltd. (SE), Nu Holdings (NU), AI startup CoreWeave (CRVW), and Alibaba (BABA) are expected to give more insight into the global demand picture. Early signs suggest consumers in both the U.S. and China are far more resilient than anyone predicted six months ago.
Breakouts Everywhere: From Palantir to Amer Sports
This rally isn’t just tech-driven. Breakout names are emerging across sectors:
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Palantir (PLTR) is coiling under a 125.25 buy point, ready to explode.
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Roblox (RBLX) is trying to clear 74.24, signaling renewed investor appetite for growth.
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Amer Sports (AS) rocketed 11.3%, clearing a double-bottom base and hinting that consumer demand may be roaring back.
So What’s Next—Genuine Growth or Political Theater?
With markets surging and optimism in the air, investors face a question: Is this the start of something real, or just another head fake?
One thing’s certain: The Trump-China trade truce marks a sharp turn away from isolationism, at least temporarily. And whether you see it as economic progress or political maneuvering, Wall Street clearly likes what it sees.
For now, the bulls are back. Whether they stay may depend on whether this deal leads to deeper reforms—or whether it’s just a headline win timed for election season. Either way, markets are moving. Fast.
