Dow jumps nearly 1,000 and S&P 500 climbs 2.6% following a 90-day truce in the US-China trade war

By STAN CHOE AP Business Writer NEW YORK AP U S stocks are leaping Monday after China and the United States released a -day truce in their pact war They agreed to take down bulk of their tariffs that economists warned could start a recession and create shortages on U S store shelves The S P was higher in early trading and back within of its all-time high set in February Since falling nearly below that mark last month the index has been roaring higher on hopes that President Donald Trump will lower his tariffs after reaching arrangement deals with other countries The index which sits at the heart of multiple k accounts is back above where it was on April Trump s Liberation Day when he released stiff worldwide tariffs that caused worries to spike about a potentially self-inflicted recession The Dow Jones Industrial Average was up points or as of a m Eastern time and the Nasdaq composite was higher It wasn t just stocks surging following what one analyst called a best incident scenario for US-China tariff talks Crude oil prices jumped more than because a global financial sector less weakened by tariffs would be hungrier for fuel The value of the dollar climbed against everything from the euro to the Japanese yen to the Swiss franc And Treasury yields jumped on expectations that the Federal Reserve won t have to cut interest rates so deeply this year in order to protect the commercial sector from the damage of tariffs Of module conditions could change fast again as Wall Street has seen all too often in Trump s on-again-off-again rollout of tariffs Plus the reduction in U S and China tariffs will last only days That s to give the world s two largest economies time for more talks followed last weekend s negotiations in Geneva Switzerland that the U S side disclosed had made substantial progress Until then a joint declaration commented the United States will cut tariffs on Chinese goods to from as high as China noted its tariffs on U S goods will fall to from That follows a deal the United States stated last week with the United Kingdom that will bring down tariffs on multiple U K imports to Big challenges remain in the negotiations between China and the United States but the mood nevertheless was ebullient across Wall Street on Monday and gains were widespread Apparel companies jumped to specific of the biggest gains because much of their production is often in China and elsewhere in Asia Lululemon leaped and Nike rose Trip companies jumped on hopes that lower tariffs would encourage more customers to fly and feel settled enough to spend on trips Carnival rose and Norwegian Cruise Line rose Retailers like Best Buy and Amazon jumped because they won t have to pass on high costs caused by tariffs to their own customers Both rose at least In stock markets abroad indexes rose across preponderance of Europe and Asia though often by less than the U S area India s Sensex shot up after India and Pakistan agreed to a truce after talks to defuse their the bulk serious military confrontation in decades The two armies have exchanged gunfire artillery strikes missiles and drones that killed dozens of people Pakistan s KSE surged more than and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about billion of a bailout package for its battered financial system In the bond sphere the yield on the -year Treasury jumped to from late Friday The two-year yield which more closely tracks expectations for what the Fed will do with interest rates jumped even more It rose to from as traders ratchet back expectations for how a multitude of cuts to rates the Fed may deliver this year Several now see just two cuts this year according to content from CME Group AP Business Writers Matt Ott Jiang Junzhe and Elaine Kurtenbach contributed