S&P 500 surges 2.7% after the U.S. and China announce a 90-truce in their trade war

NEW YORK AP Stocks are surging on Wall Street after China and the United States communicated a -day truce in their bargain war They agreed to take down the majority of their tariffs that economists warned could start a recession and create shortages on U S store shelves The S P was higher in early trading Monday The Dow Jones Industrial Average jumped points or and the Nasdaq composite was higher Crude oil prices jumped because a global market less weakened by tariffs would be hungrier for fuel The value of the dollar climbed against other currencies and Treasury yields rose THIS IS A LATEST NEWS UPDATE AP s earlier story follows below HONG KONG AP U S futures surged Monday after the U S and China publicized they were suspending for days the greater part of the sharp tariff hikes each has imposed since U S President Donald Trump began escalating his pact war A joint message on Monday reported that for a -day period the U S will cut tariffs on Chinese goods to from as high as China explained its tariffs on U S goods will fall to from The agreement to allow time for more talks followed weekend negotiations in Geneva Switzerland that the U S side noted had made substantial progress Wall Street cheered the maturation with futures for the S P jumping while futures for the Dow Jones Industrial Average rose Futures for the Nasdaq home to the biggest U S machinery companies soared American microchip companies which source much of the material needed for their semiconductors from China were among the biggest gainers early Monday ON Semiconductor Micron and Broadcom all soared between and Nvidia rose Advance companies also enjoyed big gains with American Delta and United Airlines all up around Major cruise lines rose similarly Retailers who get much of their inventory from China also benefited from the broadcasted tariff pause Amazon was up and Best Buy jumped early Pharmaceutical companies were among the limited losers Monday after Trump declared he planned to signed an executive order Monday that if implemented could bring down the costs of certain medications The order Trump is promising will direct the Department of Soundness and Human Services to tie what Medicare pays for medications administered in a practitioner s office to the lowest price paid by other countries A big pharma commerce group criticized the plan and Johnson Johnson Merck and Pfizer all tumbled around Also Monday Texas power company NRG Power announced it will essentially double its generation limit through a billion cash and stock acquisition of natural gas facilities in the Northeast and Texas from LS Power Equity Advisors an power focused assets manager Shares of NRG rose more than early Monday The full impact on the complicated tariffs and other exchange penalties enacted by Washington and Beijing remains unclear And much depends on whether they will find approaches to bridge long-standing differences during the -day suspension But as exchange envoys from the world s two biggest economies blinked finding methods to pull back from potentially massive disruptions to world arrangement and their own markets investors rejoiced Oil prices also rallied with U S benchmark crude oil gaining more than to per barrel Brent crude the international standard added to per barrel The U S dollar surged against the Japanese yen trading at Japanese yen up from yen The euro fell to from In other stock trading Tokyo s sector closed before the joint message was issued gaining less than to But Hong Kong s which closes later jumped to In Europe at midday Germany s DAX gained and the CAC in Paris added Britain s FTSE was higher Investors were also watching for developments in other flashpoints including clashes between India and Pakistan the war in Ukraine and conflict in the Middle East The Sensex in Mumbai shot up after India and Pakistan agreed to a truce after talks to defuse their largest part serious military confrontation in decades The two armies have exchanged gunfire artillery strikes missiles and drones that killed dozens of people Pakistan s KSE surged more than and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about billion of a bailout package for its battered economic system The Shanghai Composite Index picked up to Chinese EV battery maker CATL or Contemporary Amperex System Co Ltd commented in a prospectus filed with the Hong Kong Stock Exchange that it plans to raise nearly billion in a share listing Elsewhere in Asia the Kospi in Seoul gained to Australia s S P ASX climbed less than to Taiwan s Taiex gained