Dow Surges as Tariff Truce with China Sparks Market Rebound; NASDAQ 100 Bounces Back

May 13, 2025 11:57 PM AEST | By Team Kalkine Media
 Dow Surges as Tariff Truce with China Sparks Market Rebound; NASDAQ 100 Bounces Back
Image source: Shutterstock

Highlights:

  • The Dow Jones Industrial Average closed sharply higher following a temporary suspension of tariffs by the U.S. and China

  • The NASDAQ 100 index exited bear territory amid renewed confidence across the technology sector

  • Broader U.S. indexes including the S&P 500 posted strong gains as trade tensions eased

The U.S. stock market recorded a strong session as major indexes surged after a joint agreement between the United States and China to roll back tariffs for a specified period. The Dow Jones Industrial Average advanced significantly, rebounding from a series of recent declines. The S&P 500 also saw pronounced upward movement, reinforcing the day’s optimistic sentiment. Gains were most notable among large-cap and industrial names that had previously been under pressure from international trade tensions.

Technology Sector Rebounds Strongly

The NASDAQ 100 registered a broad recovery, marking its exit from bear market conditions. Prominent technology companies led the momentum. Apple Inc. (AAPL), Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL), and Amazon.com Inc. (AMZN) all finished higher, reflecting a more favourable outlook following the trade-related developments. Semiconductor firms such as NVIDIA Corp. (NVDA) and Intel Corp. (INTC) also participated in the uptrend, while software providers including Adobe Inc. (ADBE) and Salesforce Inc. (CRM) recorded notable strength.

Trade and Industrial Companies Climb

Industrials and manufacturing-oriented firms responded with notable gains after the trade rollback announcement. Caterpillar Inc. (CAT) and Deere & Company (DE) were among the top performers in this space. Boeing Co. (BA), a key component of the Dow Jones, saw a boost in share value as sentiment improved regarding overseas demand and supply chain dynamics. General Electric Co. (GE) and Honeywell International Inc. (HON) followed suit.

Retail and Healthcare Participate in Rally

Consumer and retail stocks saw strength as concerns surrounding import costs were temporarily reduced. Walmart Inc. (WMT), Target Corp. (TGT), and Home Depot Inc. (HD) all closed in positive territory. In the healthcare sector, pharmaceutical giants such as Pfizer Inc. (PFE), Merck & Co. Inc. (MRK), and Johnson & Johnson (JNJ) showed upward movement. This followed a public statement regarding administrative efforts to revise prescription drug pricing, which added to the broader optimism in the market.

Financial Sector Responds Positively

Financial services companies contributed to the session’s gains. Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM), Citigroup Inc. (C), and Goldman Sachs Group Inc. (GS) moved higher, mirroring the rise in benchmark indexes. This was mirrored by increased momentum in credit card and payment processors such as Visa Inc. (V) and Mastercard Inc. (MA).

Energy and Commodity-Linked Stocks See Interest

Energy names also gained traction. Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), and ConocoPhillips (COP) closed higher as energy prices rebounded slightly. Commodity producers such as Freeport-McMoRan Inc. (FCX) and Newmont Corporation (NEM) tracked upward alongside global resource pricing and easing tariff concerns.

Indexes Recap and Broader Sentiment

The Dow Jones Industrial Average, the S&P 500, and the NASDAQ 100 ended the session in sharply positive territory. The collective advance was supported by improved sentiment surrounding the temporary easing of U.S.-China trade tariffs. This broad-based rally covered sectors ranging from technology and industrials to healthcare and energy, reflecting a more constructive tone across equity markets.


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