Markets Rally After US, China Announce 90-day Tariff Reductions

Stocks, crude oil, and Treasury yields pop on temporary tariff cuts.

Traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City on May 12, 2025. Angela Weiss/AFP via Getty Images

U.S. stocks rallied on May 12 after the United States and China agreed to temporary tariff reductions.

The blue-chip Dow Jones Industrial Average soared by 1,160 points, or 2.8 percent. The index has erased most of 2025’s losses and is down by less than 1 percent.