The Dow Jones Industrial Average went up over 1,000 points on Monday in a big win for US stocks, as the US and China announced a pause on tariffs. The two countries had reached a new tariff deal. Specifically, they agreed to halt and lower their present import duty increases over the next 90 days. That has many hopeful that the two sides will be able to come together on a new trade deal.

The two sides were embroiled in a standoff that could quickly escalate into a trade war. Following the initial implementation of the United States’ “Liberation Day” tariff plan, continued reciprocal import duty increases had been a constant. Yet, the US and UK had come to terms on a notable trade deal last week, leaving many optimistic that a deal with China would be done. Now, reports have emerged that a temporary deal has been made.

US Treasury Secretary Scott Bessent said on Monday that talks with China had been “very productive.” Reportedly, both countries had agreed to cut tariffs temporarily. U.S. tariffs on Chinese goods were brought down to 30%, while Chinese tariffs on U.S. imports were slashed to 10%. This is dramatically lower than the triple-digit percentage tariffs that were initially discussed in April.

The S&P 500 popped nearly 3% on Monday, bringing its gain since its April intraday low at the height of tariff pessimism to more than 20%. The benchmark has cut its year-to-date losses to just 0.9%. The Nasdaq Composite also climbed by 4%, with US tech stocks tied to China surging. Tesla jumped 7% while Apple and Nvidia gained 5% each. Shares of companies that rely the most on Chinese goods rallied the most. Best Buy popped 7%, Dell Technologies climbed 7%, and Amazon (AMZN) surged by 5%.

Also Read: Trump’s American Bitcoin Mining Company to Officially Go Public

“Markets are rallying because investors are surprised by the velocity of the Chinese trade tariff deal progress,” said Jeff Kilburg of KKM Financial. “No one had these low China tariff rates on their bingo cards. This is a big positive surprise,” added Jeff Buchbinder, chief equity strategist at LPL Financial. But “this is de-escalation, not a trade deal. More work remains to be done. A pause isn’t permanent. China just got the same deal as all other countries.”

Besides US stocks, the news also saw Bitcoin (BTC) reach heights of $105,000 on Monday. Moreover, the developments have seen it continue a 24% surge that has taken place over the last 30 days, according to CoinMarketCap. Most importantly, it is the highest the cryptocurrency has gone since it reached its $109,356 all-time high in January of this year. Other cryptocurrencies have also risen, including XRP and Tron TRX.

The Dow Jones Industrial Average went up over 1,000 points on Monday in a big win for US stocks, as the US and China announced a pause on tariffs. The two countries had reached a new tariff deal. Specifically, they agreed to halt and lower their present import duty increases over the next 90 days. That has many hopeful that the two sides will be able to come together on a new trade deal.

The two sides were embroiled in a standoff that could quickly escalate into a trade war. Following the initial implementation of the United States’ “Liberation Day” tariff plan, continued reciprocal import duty increases had been a constant. Yet, the US and UK had come to terms on a notable trade deal last week, leaving many optimistic that a deal with China would be done. Now, reports have emerged that a temporary deal has been made.

US Treasury Secretary Scott Bessent said on Monday that talks with China had been “very productive.” Reportedly, both countries had agreed to cut tariffs temporarily. U.S. tariffs on Chinese goods were brought down to 30%, while Chinese tariffs on U.S. imports were slashed to 10%. This is dramatically lower than the triple-digit percentage tariffs that were initially discussed in April.

The S&P 500 popped nearly 3% on Monday, bringing its gain since its April intraday low at the height of tariff pessimism to more than 20%. The benchmark has cut its year-to-date losses to just 0.9%. The Nasdaq Composite also climbed by 4%, with US tech stocks tied to China surging. Tesla jumped 7% while Apple and Nvidia gained 5% each. Shares of companies that rely the most on Chinese goods rallied the most. Best Buy popped 7%, Dell Technologies climbed 7%, and Amazon (AMZN) surged by 5%.

Also Read: Trump’s American Bitcoin Mining Company to Officially Go Public

“Markets are rallying because investors are surprised by the velocity of the Chinese trade tariff deal progress,” said Jeff Kilburg of KKM Financial. “No one had these low China tariff rates on their bingo cards. This is a big positive surprise,” added Jeff Buchbinder, chief equity strategist at LPL Financial. But “this is de-escalation, not a trade deal. More work remains to be done. A pause isn’t permanent. China just got the same deal as all other countries.”

Besides US stocks, the news also saw Bitcoin (BTC) reach heights of $105,000 on Monday. Moreover, the developments have seen it continue a 24% surge that has taken place over the last 30 days, according to CoinMarketCap. Most importantly, it is the highest the cryptocurrency has gone since it reached its $109,356 all-time high in January of this year. Other cryptocurrencies have also risen, including XRP and Tron TRX.