US stocks demonstrated the best performance since March of this year. The reason for this was the easing of trade tension between Washington and Beijing and the temporary reduction of mutual tariffs on goods from both countries. S&P 500 index rose by 3.3%, showing the best results since April 9. This value exceeds last month's figures reached just before US President Donald Trump first announced the introduction of trade duties.
According to the new agreement between the two countries, US 145% tariffs on most Chinese imports will drop to 30% by tomorrow. Meanwhile, China’s 125% duties on US goods will be cut to 10%.
According to Bloomberg analysts, the current relief in trade relations between the US and China may be temporary. Moreover, it may soon be overshadowed by new data indicating a slowdown in the US economy.