Markets Surge as U.S. and China Hit Pause on Tariff War

​Wall Street just got the break it was waiting for.

The S&P 500 futures spiked 3%, Nasdaq futures jumped nearly 4%, and safe havens like gold and Treasuries sold off as the U.S. and China agreed to cut tariffs—a long-awaited truce in a trade war that’s rattled global markets for over a month.

The Deal That Moved Markets
The breakthrough, announced in Geneva, includes a temporary reduction in tariffs on each other’s goods. Treasury Secretary Scott Bessent hailed the talks as “robust and productive,” and emphasized that “neither side wants to decouple.”

This shift is a major reversal from Trump’s early-April “Liberation Day” tariff shock, which sent markets into a tailspin. With progress now being made, investors are jumping back into riskier assets.

Winners and Losers
-Big Tech stocks—previously battered by trade fears—led the rally.
-Bitcoin continued its rise, hitting $105,509.
-The dollar strengthened, hitting a one-month high.
-Gold dropped 2.7%, and the 10-year Treasury yield climbed to 4.44%.

Meanwhile, Asian markets soared, with India’s and Pakistan’s stock markets rallying after the two countries agreed to a ceasefire—another surprise boost to risk sentiment.

Trump Tosses in a Bonus
Adding to the action, Trump also announced a plan to slash U.S. prescription drug costs by linking them to the lowest international prices. The move sent Asian pharma stocks sliding.

Bottom Line
​Markets love clarity—and this week, they finally got a double dose: de-escalation on trade and easing geopolitical tension in South Asia. With risk appetite back and cash-rich investors ready to deploy capital, the rally might just have legs. For now, the tariff fever has broken—and Wall Street is breathing a little easier.