Wall Street Extends Gains as US-China Trade Tensions Ease

U.S. equities extended their rally for a third consecutive session, buoyed by de-escalating trade tensions between Washington and Beijing. The S&P 500 edged up 0.10% to 5,892.58, crossing into positive territory year-to-date, while the Nasdaq Composite outperformed with a 0.72% gain to 19,146.81.

Only the Dow Jones Industrial Average bucked the trend, slipping 0.21% to 42,051.06. The broad-based advance follows reciprocal tariff reductions—the U.S. cut duties on Chinese imports to 30%, while China lowered its rates to 10% for American goods. This détente marks a sharp reversal from April’s threats of triple-digit tariffs.

Risk appetite returned as investors interpreted the tariff rollback as a sign of thawing relations. The reprieve from trade war escalation fueled buying across growth-sensitive assets, though cryptocurrency markets remained conspicuously absent from today’s narrative.