Global stock markets went higher today after Washington and Beijing agreed to slash many of the punishing tariffs each put on the other.Futures pointed to a sharp rebound on Wall Street. Futures tied to the S&P 500 were up about 3%, setting up the index’s strongest session since April 9, while NASDAQ futures climbed roughly 4%. Gains rippled across Asia and Europe, pushing key benchmarks in Tokyo, Hong Kong, London, and Frankfurt between 2% and 3% higher.The rally followed a joint statement released after weekend talks in Geneva, where American and Chinese officials pledged to roll back duties for 90 days as broader negotiations continue. .The US said it will reduce its tariffs on Chinese goods to 30% from 145%. China agreed to lower its tariffs on American imports to 10% from 125%.Market watchers said the move signalled a real, if temporary, pause in a trade fight that had sent the S&P 500 nearly 20% below its February peak and disturbed supply chains around the globe. Since early April, a series of exemptions and pauses on US penalties has helped the index regain roughly two‑thirds of that downturn..Currency dealers also reacted. The US dollar strengthened against a basket of major rivals, and yields on 10 year US Treasuries went higher as traders shifted out of safer assets.Economists welcomed the reprieve but warned that the damage from earlier rounds of protectionism would continue. The World Trade Organization has estimated the creation of “rival blocs” could take nearly 7% off global output over the long term. .Last month, the International Monetary Fund cut its 2025 growth outlook for every Group of Seven nation, blaming the economic drag from higher US tariffs.The US and China said “technical teams” will meet again within weeks to search for a lasting agreement. For now, traders are betting that even a short lived ceasefire is enough to keep the world economy on steadier footing for the time being.
