Trade truce between the United States and China pushes the Dow Jones to new highs

DOWJONES

The Dow Jones Index is trading above the support level of $42,000. Prices are likely to target the resistance level at $43,700. However, this scenario would be invalidated if the aforementioned support level is broken to the downside.

The Dow Jones Industrial Average witnessed a significant rise, surging by 1,160 points, or 2.8%, to close at 42,410.10. This increase came after the United States and China announced a 90-day trade truce, which included substantial tariff reductions between the two countries. The U.S. cut tariffs on Chinese imports from 145% to 30%, while China reduced its tariffs on American goods from 125% to 10%.

This temporary agreement restored confidence in the financial markets, especially after a period of volatility caused by previous trade policies. Technology stocks led the rally, with companies such as Amazon, Apple, and Nvidia recording strong gains. Travel and retail stocks, including Delta Airlines and Amazon, also rose on expectations of improved economic activity resulting from eased trade tensions.

Overall, the Dow Jones’ performance on this day reflects a positive investor response to political and economic developments, coupled with cautious anticipation of future progress.

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