US Stock Market LIVE: Dow Jones zooms 1,100 points after China and US agree to temporary tariff cuts

US Stock Market LIVE: US stocks are leaping on Monday (May 12) after China and the United States announced a 90-day truce in their trade war. Each of the world’s two largest economies agreed to take down most of its tariffs against the other, which economists warned could start a recession and create shortages on US store shelves. The S&P 500 was up 2.4% in morning trading and back within 5.6% of its all-time high set in February.

US Stock Market LIVE: US stocks are leaping on Monday (May 12) after China and the United States announced a 90-day truce in their trade war. Each of the world’s two largest economies agreed to take down most of its tariffs against the other, which economists warned could start a recession and create shortages on US store shelves. The S&P 500 was up 2.4% in morning trading and back within 5.6% of its all-time high set in February. The index has been roaring higher since falling nearly 20% below that mark last month on hopes that President Donald Trump will lower his tariffs after reaching trade deals with other countries. It’s back above where it was on April 2, Trump’s “Liberation Day,” when he announced stiff worldwide tariffs that ignited worries about a potentially self-inflicted recession. The Dow Jones Industrial Average was up 923 points, or 2.2%, as of 10:40 a.m. Eastern time, and the Nasdaq composite was 3.3% higher.