Dow Jones Rallies on U.S.-China Trade Truce; Nuclear Testing Order Adds Geopolitical Tension

The Dow Jones Industrial Average reversed early losses to trade higher after Presidents TRUMP and Xi Jinping agreed to a one-year trade truce. The deal reduces U.S. tariffs on Chinese goods to 47% from 57% and secures commitments from Beijing to increase agricultural purchases. "There is enormous respect between our two Countries," Trump declared on Truth Social, framing the agreement as a diplomatic victory.

Geopolitical tensions resurfaced as Trump ordered the Pentagon to match Chinese and Russian nuclear testing activity. The directive, which could end a 32-year U.S. moratorium on live nuclear tests, followed reports of accelerated weapons development in Moscow. Market analysts noted the contradictory signals of trade détente and military escalation.

Federal Reserve rate cut expectations diminished after Chair Powell's latest remarks, though the text cuts off before detailing the monetary policy implications. The truncated commentary leaves traders parsing incomplete information ahead of December's FOMC meeting.