Dow soars 1,100 points after Trump team and China dramatically lower tariffs

[littlemissmartypants]

Source: CNN

US stocks surged on Monday after President Donald Trump’s top trade officials brokered a surprisingly dramatic de-escalation in trade tensions with China over the weekend, dropping tariffs to much lower levels, which some economists say could stave off a US recession.

The Dow closed higher by 1,161 points, or 2.81%. The broader S&P 500 gained 3.26%, and the tech-heavy Nasdaq Composite surged 4.35%. The three major indexes each posted their biggest single-day gains in over one month.

“The sharp market rally today reflects the unexpectedly positive tariff news,” said Keith Lerner, chief market strategist at Truist Advisory Services, in a Monday note. “Many investors were not positioned for this outcome, leading to a significant market surge.”

The Nasdaq, which had entered a bear market on April 4, closed up more than 20% from its lowest point this year — exiting its bear market and marking the start of a new bull market. (A rise of 20% from a recent low generally marks a bull market.)

Snip...

Read more: https://www.cnn.com/2025/05/12/investing/us-stock-market?iid=cnn_buildContentRecirc_end_recirc

[kacekwl]

1. So

what exactly was the point ? Did more inside traders make another killing today ?

[House of Roberts]

2. Wait 90 days,

then they will go down again, and a new extension will bring them back up again, etc. etc.

[bucolic_frolic]

3. Investors whiplashed again

There were bargains 3 days ago but they looked ready to plunge because of the tariffs.

Honestly this is just a system for pump and dump and pump and dump and again and again.

Somebody's making a killing.

[DENVERPOPS]

5. The inside traders

are making a fortune off of this roller coaster.....selling short, buying back in, watching it rise......rinse/repeat......

There is no end to the 1%ers relentless efforts to continuously make money the corrupt way....it's all they know.....

[bucolic_frolic]

7. To catch a fish, think like a fish.

But it sure would have been hard to go long Friday.

[republianmushroom]

4. Just a little market manipulation.

[bucolic_frolic]

8. Trump-n-Dump

Works like a laxative every time.

[Cheezoholic]

6. Ooo, Ahh, Eee goes the M$M. What placating Asswipes they are. Its moved this much how many times recently up/down?

It's barely given back half of what it lost since Krasnov started playing Monopoly with our lives. While a market correction was probably due at some point what was the post COVID price gouging greed masturbation fest it still is down around 5 trillion (crazy how we throw these insanely large numbers like they're marbles these days). I look at this very very meager response to him basically selling Baltic Avenue for an extra 10 bucks as a bunch of tourists who have been riding the same roller coaster for nearly 6 months and don't even yell, scream or raise their hands anymore.

[Iamscrewed]

9. Insider trading

Again.

[progree]

10. S&P 500 closed Monday 5/12 at 5844, up 1.1% since election day, down 2.6% from the inauguration eve,

down 0.6% year-to-date,

and down 4.9% from its all-time closing high of 6144 on Feb 19. (we were down 18.9% at the 4/8 close, nearing a bear market which is 20% down. )

Details at https://www.democraticunderground.com/111699775
pinned at the top of the Economy Group, which I update daily.

Both the S&P 500 and the Dow closed above their election day levels for the first time in months, but both are below their inauguration eve levels.

My understanding is the U.S. tariffs on most imports from China will be 30% according to several articles -- a universal 10% tariff plus an additional 20% tariff that was imposed months ago for China's alleged role in fentanyl supply. Special levies on steel, aluminum, and autos still remain in effect. That's still quite inflationary and disruptive of trade and supply chains. That isn't good for the economy, and this so-called "pause" is for just 90 days, not "permanent". So I'm expecting the market to start sliding again when the economic realities settle in.

The OP article also says "the 30% rate during the pause"

Tomorrow the CPI inflation report for April comes out (8:30 AM EDT), and a 0.3% month over month increase in both the headline "everything" CPI measure and the core measure is expected (an annualized pace of more than 3.6%), according to Yahoo Finance https://finance.yahoo.com/news/april-cpi-report-expected-to-show-first-signs-of-trump-tariffs-inflationary-impact-185747805.html).

[mdbl]

11. More market manipulation

I wonder who he told this time?

[littlemissmartypants]

13. Whoever it is, they're probably on speed dial.

[slightlv]

12. This is so "new normal" as to be extremely stupid for

people not to see and know ahead of it all. Cycle for insiders to gain more wealth from a system that is nothing more than legalized gambling.