The U.S. and China agreed to de-escalate their trade war by cutting tariffs by 115 percentage points, bringing U.S. duties on Chinese goods down to 30%.
The announcement sparked a broad-based equity rally, with the S&P 500 climbing back to early March 2025 levels and erasing losses from President Donald Trump‘s “Liberation Day” tariff shock.
The improved trade outlook also prompted economists to cut recession odds and upgrade U.S. growth forecasts for the second half of the year.
S&P 500 Logs 5 Consecutive Winning Sessions
The SPDR S&P 500 ETF Trust (NYSE:SPY) closed 5% higher for the week, notching five straight sessions in the green.
Semiconductors kept powering higher. The iShares Semiconductor ETF (NYSE:SOXX) rose nearly 10% on the week, logging its fourth straight week of gains and delivering its best monthly rally since 2020.
Yet, clean energy stocks – as tracked by the Invesco Solar ETF (NYSE:TAN) – outshined even chipmakers. Solar names surged after Republicans released a better-than-expected tax proposal …