The easing of tariffs between China and the United States has boosted the US stock market, with technology stocks leading the market recovery

On Monday (May 12th), the US stock market closed higher across the board, with stock indices approaching intraday highs, mainly benefiting from the phased easing agreement reached between China and the United States on tariff issues. Investors generally believe that this breakthrough trade development has eased market concerns about the escalation of the trade war and significantly boosted investor confidence.

The technology sector performed outstandingly, driving the S&P 500 index up 3.26%, setting the largest daily increase since early March. The Dow Jones Industrial Average closed up 2.81%, with an increase of over 1100 points. The Nasdaq Composite Index led the gains, surging 4.35%. The "seven giants of technology" have all strengthened, with Tesla, Amazon, Apple, and Nvidia performing particularly well. Apple's stock price was stimulated by a report from The Wall Street Journal that the company is considering raising the price of its flagship iPhone without blaming tariffs.

In terms of specific data, the Dow Jones Industrial Average closed at 42410.10 points, up 1160.72 points; The S&P 500 closed at 5844.19 points, up 184.28 points; The Nasdaq Composite Index closed at 18708.34 points, up 779.43 points.

Both China and the United States announced a temporary suspension of tariffs for 90 days, and the market responded positively. The United States will reduce the tariff rate on most Chinese imported goods from 145% to 30%, and China will correspondingly reduce the tariff rate on American products from 125% to 10%. US Treasury Secretary Scott Besant emphasized at a press conference that "both sides agree that decoupling the industrial chain is not desirable". Both sides plan to continue trade negotiations and maintain bureau level consultations on relevant economic and trade issues.

Investors had previously expressed concerns about the possibility of the Trump administration taking stricter tariff measures. Alberto Matrand, Managing Director of Responsible Finance in France, pointed out that "the stock market has been under pressure in the past few months due to concerns about the escalation of the trade war and uncertainty about White House policies. If the current situation can gradually become clearer, the market will usher in a positive turning point

BlackRock analysis points out that trade frictions continue to cause fluctuations in the economy, but unlike traditional demand driven economic downturns, this shock is more inclined towards supply chain adjustments. Although market volatility is still inevitable, the wave of artificial intelligence provides support for maintaining its "overbought" rating on the US stock market, and overall, it is optimistic about the performance of developed market stocks.

Tech giant stocks are highly sought after, with Nvidia's stock price rising by over 5% in a single day, while tech giants such as Amazon, Apple, and Tesla have all recorded significant gains.

In addition, President Trump signed an executive order with the intention of significantly reducing drug prices in the United States, promising a reduction of at least 59%. However, the details of the relevant plans have not been fully disclosed, and pharmaceutical stocks including Pfizer, Eli Lilly, and Johnson&Johnson have all experienced varying degrees of decline.

The rise in US dollar and bond yields, coupled with the increase in crude oil prices, has driven the overall strength of commodities. Investors will pay attention to the April Consumer Price Index (CPI) released on Tuesday, as well as the retail sales data and Producer Price Index (PPI) released on Thursday, to assess the impact of tariff policies on inflation.

In terms of individual stock performance, most US shipping stocks rose, with Star Shipping closing up nearly 14%, Maersk ADR up over 9%, and Hapag Lloyd ADR up nearly 12%. Rigetti Computing, a nuclear power concept stock, fell about 10% after hours due to lower than expected revenue in the first quarter.

On Google's parent company Alphabet, the stock price rose 3.74%, but investment bank Wedbush removed it from its "best investment list" citing uncertainty about the long-term impact of artificial intelligence technology on its business model.

With the improvement of Sino US trade relations driving up crude oil prices, the stock prices of Chevron and ExxonMobil have both risen sharply.

Several important companies will release their financial reports this week, including Home Depot Palo Alto Networks、 Roche, Target, and Snowflake will continue to focus on corporate profitability performance in the market.