Wall Street surges after US, China agree to slash tariffs for 90 days in pivotal thaw of trade tensions

US stocks surged Monday morning after the White House and China agreed to slash rates for 90 days in what could be a pivotal thawing of trade tensions between the world’s largest economies.The Dow Jones Industrial Average jumped 1,044 points, or 2.5%, while the S&P 500 and Nasdaq soared 2.9% and 4%, respectively. Treasury Secretary Scott Bessent on Monday said talks with China over the weekend in Switzerland had been “very productive,” and announced the two countries had agreed to lower tariff rates by 115% for 90 days. That brings the US tariffs on Chinese goods down to 30%, and the Chinese tariffs on US imports down to 10%.A separate 20% tax on Chinese imports that President Trump attributed to the nation’s involvement in fentanyl smuggling will remain in place.Bessent also gave investors hope for a long-term trade agreement in the near future.“I would imagine in the next few weeks we will be meeting again to get rolling on a more fulsome agreement,” Bessent told CNBC’s “Squawk Box.”Shares in tech and electronics firms jumped on Monday, as many of these products are produced in Chinese factories at low costs. Shares in Apple, which makes the majority of its iPhones in China, spiked 5.1%, while Amazon’s stock soared 8.6%.Consumer tech brands welcomed the news, with Dell Technologies shares jumping 7%. Retailers selling televisions, laptops and smart devices also popped Monday morning.Shares in Best Buy rocketed up 8.1%.“The larger-than-expected drop in the tariffs between the US and China, while temporary, and the establishment of a framework for continued discussion, is exactly what the stock market was hoping to see,” Carol Schleif, chief market strategist at BMO Private Wealth, said in a note.The 90-day pause comes at the perfect time for retailers and suppliers, who are preparing for the all-important back-to-school and holiday shopping seasons, Schleif added.Prior to Monday’s temporary pause, consumers and businesses were fac...