U.S.-China Trade Deal Boosts Market Confidence Amid Economic Uncertainty

A significant trade agreement between the U.S. and China, reached on May 12, 2025, has significantly boosted market confidence following months of economic uncertainty stemming from rising tariffs. The deal involves a temporary suspension of additional ad valorem duties for 90 days, with an aim to improve bilateral economic relations. This move is reflected in the positive response from financial markets, as observed by the surge in the S&P 500 index and other major indices following the agreement’s announcement.