As the United States and China agreed to a 90-day ceasefire in their trade war, the Dow Jones Industrial Average surged by more than 1,000 points shortly after the opening on Dec. 12 (local time) in New York.
At 9:40 a.m. (local time) on the same day, the Dow Jones Industrial Average, centered on blue-chip stocks, reached 42,268.03, up 1,018.65 points (2.47%) from the previous trading day.
At the same time, the Standard & Poor's (S&P) 500 index, centered on large-cap stocks, recorded a rise of 144.93 points (2.56%) to 5,647.46. The NASDAQ Composite, focused on technology stocks, jumped to 18,539.49, up 610.57 points (3.41%).
The results of the U.S.-China trade negotiations stimulated investor sentiment, allowing all three major stock indices to recover losses since the 'Day of Liberation,' when President Donald Trump announced universal and reciprocal tariffs.
As a result of the U.S.-China negotiations held in Geneva, Switzerland, from the 10th, it was decided to reduce tariffs by 115 percentage points over 90 days. Starting from the 14th, tariffs imposed by the U.S. on Chinese products will decrease from 145% to 30%, while tariffs imposed by China on U.S. goods will drop from 125% to 10%.
Global investment bank JP Morgan evaluated that the S&P 500 index could rise to the 6,000 level based on the outcomes of the negotiations. JP Morgan noted, 'President Donald Trump seems to be stepping back from his initial hardline stance,' and added, 'The market's focus is shifting to negotiations with other major trading partners, including Canada, Mexico, and the European Union (EU).'
However, during the 90-day grace period ahead, market fluctuations may occur depending on the results of the U.S.-China negotiations. CitiGroup stated, 'While today's announcement is very positive, the economic damage caused by high tariffs is already underway,' and remarked, 'We need to watch how it will affect the labor market and inflation in the future.'