Wall Street Gains as US-China Tariff Truce Holds

The US-China 90-day tariff truce led Wall Street to advance on Wednesday as it reduced US tariffs to 30% and Chinese tariffs to 10%. The S&P 500 index increased 0.2% while the Nasdaq rose 0.6% and the Dow Jones Industrial Average added 3 points before 11:30 a.m. Eastern time. Super Micro Computer stock price surged 16.8% because of a Saudi data center acquisition while Advanced Micro Devices (AMD) stock price increased 4.8% after announcing a $6 billion stock buyback. The S&P 500 index recovered its 2025 losses after April inflation decreased to 2.3% from 2.4% which supported market growth to 4.1% below its February peak. RGA Investments’ Rick Gardner stated that the China deal represented a vital obstacle which investors have now overcome. The business planning process remains uncertain because of ongoing tariffs at 30% for China and 10% globally and Trump’s unpredictable trade policies. The 5.5% decline of American Eagle stock prices followed its decision to remove 2025 outlook projections which matched General Motors and Kraft Heinz in their explanations about tariffs and economic challenges. The S&P 500 companies delivered strong Q1 earnings results but their current-quarter projections decreased by more than half. The economy experienced a 0.3% decline during Q1 while inflation approaches the Fed’s 2% target yet businesses remain cautious because of expected tariff-related price increases which keep consumer sentiment low.