The Dow surged by 419.97 points, up 1.64 percent to 25,958.43, according to data from Bloomberg at 14:45 GMT. The US stock index later dropped back down to 25,868.35. The S&P 500 went up by 35.35 points, around 1.28 percent and the Nasdaq Composite outperformed by 124.64 percent, going up by 1.70 percent to 7,455.18. The positive start for the US stock market comes after Washington and Beijing agreed to halt additional tariffs for 90 days in a deal that keeps their trade war from escalating.
President Donald Trump and Chinese President Xi Jinping met during the G20 summit in Buenos Aires, Argentina, this weekend, were they held high-stake talks on ongoing tensions.
The US leader said he would not boost tariffs on $200 billion of Chinese goods to 25 percent on January 1 as previously announced.
Mr Trump also tweeted that China had agreed to cut import tariffs on American-made cars.
Europe and Asia stock markets were boosted by the news and oil prices were also boosted by the news today.
vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.
The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.
ANZ economist Jo Masters said: “Markets are opening with a knee-jerk boost to risk appetite but time will tell how enduring the optimism proves to be.
“There are already very different official takes on what was achieved at the meeting.
“But for now, both sides can claim a win.
“Perhaps not insignificantly, it provides a window to export the soybean crop from key Republican states, at least.”
The trade truce was the latest “circuit breaker” needed to trigger a return to risk appetite, said Guillermo Felices, head of research and strategy in the Multi-Asset, Quantitative and Solutions team at BNP Paribas Asset Management.
He said: “The first was markets pricing in a more dovish Fed, the second, more aggressive policy stimulus by the Chinese authorities and the third, easing trade tensions.”
Elsewhere, oil prices jumped by more than 5 percent, with both US light crude and Brent crude rising per barrel.
US light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 percent, before easing to around $53.25 by 1420 GMT.
Brent crude rose 5.3 percent or $3.14 to a high of $62.60 and was last trading around $62.00, up $2.54.