Main US indexes jump; Nasdaq up ~3.5, out front
Cons Disc leads S&P 500 sector gainers; Defensives lag
Euro STOXX 600 index up ~0.8%
Dollar surges; crude up ~3%; bitcoin ~flat; gold slides >2.5%
US 10-Year Treasury yield jumps to ~4.45%
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RISK-ON IS OFF THE LEASH
Wall Street's main indexes are sharply higher early on Monday as the United States and China reached a deal to reduce tariffs, signaling a truce in a punishing trade war that had kept markets on edge for weeks.
Most S&P 500 index .SPX sectors are higher with consumer discretionary .SPLRCD, up nearly 5%, out front.
Amid the risk-on wave, defensive staples .SPLRCS and utilities .SPLRCU, which are both slightly red, are the laggards.
Under the surface, transports .DJT, chips .SOX, banks .KRX, .SPXBK and small caps .RUT are among outperformers.
Gold stocks .HUI, off more than 7%, are being hit especially hard.
The CBOE market volatility index .VIX is down to the 19.00 area, or its lowest level since March 28.
All three of the main indexes have popped back above their 200-day moving averages. Traders will be watching to see if the strength can hold into the close.
Here is a snapshot of where markets stood just shortly before 10:00 a.m. ET:
(Terence Gabriel)
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MONDAY'S EARLIER LIVE MARKET POSTS:
U.S. STOCK FUTURES ROCKET ON U.S.-CHINA DEAL TO REDUCE TARIFFS CLICK HERE
EUROPEAN TRAVEL RETAIL: RIPE FOR CONSOLIDATION CLICK HERE
DUSTING OFF UKRAINE CEASEFIRE BASKETS CLICK HERE
EUROPEAN BANKS: A RESILIENT EARNINGS SEASON CLICK HERE
STAY BULLISH! US EQUITIES LIKELY TO OUTPERFORM EUROPE CLICK HERE
US-CHINA DEAL LIFTS MINERS, AUTOS, LUXURY; DRAGS DEFENCE CLICK HERE
BEFORE THE BELL: EUROPEAN FUTURES RALLY, PHARMA DOWN CLICK HERE
THE DEVIL'S IN THE LACK OF DETAIL CLICK HERE
EarlyTrade05122025 https://tmsnrt.rs/3Sxc6kQ
(Terence Gabriel is a Reuters market analyst. The views expressed are his own)
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