Financial Markets Soar as US-China Trade Tensions Ease
US stock markets surged on Tuesday, with the Dow Jones Industrial Average closing at 42,343 points, a 1.8 percent increase from the previous trading day. The S&P 500, a broader market index, rose 2 percent to around 5,915 points, while the tech-heavy Nasdaq 100 gained 2.5 percent, reaching nearly 19,200 points.
The market’s euphoric response was triggered by the latest development in the US-China trade dispute. US President Donald Trump announced a delay in the implementation of 50 percent tariffs on the European Union, initially set for June 1, until July 9. Investors are hopeful that this extension will provide an opportunity for a resolution to be found.
Meanwhile, the euro weakened against the US dollar, with one euro equivalent to 1.1335 US dollars and one dollar worth 0.8822 euros. The gold price also declined, with an ounce of gold selling for 3,304 US dollars, a 1.1 percent decrease, or 93.72 euros per gram.
Oil prices, however, took a hit, with a barrel of Brent crude selling for 64.16 US dollars, a 0.9 percent decrease, or 58 cents, from the previous trading day’s close.