US Stocks Gain After US, China 90-Day Trade Deal

Nasdaq saw a strong rally yesterday. Nasdaq composite closed the day yesterday, 13th May, 2025 up by 301.74 points or 1.61%. S&P 500 also closed the day, up by 42.36 points or 0.72%. US stocks gained after US and China agreed to a temporary 90-day truce in their ongoing trade war. Both the countries have reduced the tariffs on each other’s goods by 115%. America has reduced tariffs on many Chinese goods to 30% from 145%. China has reduced tariffs on American goods to 10% from 125%. The expectation is that the two countries will now hammer out a reasonable permanent trade deal. Both the countries have said that they will establish a mechanism for further trade talks.

Data source: www.nasdaq.com

United Health’s Stock Gets a Hammering

Dow Jones , however, closed the day, yesterday, down by 269.67 points or 0.64%. It was weighed down by the decline in the stock of United Health. United Health’s stock price came down by 17.79%. The stock ended the day at $311.38. The stock took a beating after the company’s CEO Andrew Witty announced his resignation. Mr. Witty’s resignation came as a surprise. United also withdrew the financial outlook that it had given for 2025.

Nvidia Gains on Saudi Deal

Nvidia Corp’s stock price gained 5.63% and closed the day at $129.93. The stock jumped on the news that Nvidia has signed a deal with Saudi Arabia based startup Humain. The company is likely to sell may thousands of its AI chips as part of this deal. Nvidia is a leading manufacturer of Artificial Intelligence chips, especially Graphical Processing Unit (GPU) chips. The company is expected to gain in the foreseeable future as the use of AI increases.

US, China trade deal has given a boost to market sentiments because higher tariff on Chinese imports are also harmful for the US economy. It raises prices of Chinese goods that are sold in America, thereby putting upward pressure on inflation in America. US Federal Reserve in its most recent monetary policy meeting kept interest rate unchanged. It cited upward pressure on inflation due to the higher US tariffs on imports as reason for not cutting down interest rate further.

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Source: www.nasdaq.com