Dow Jones: Apple, Microsoft, 3M Lead Industrial Average as Stock Market Surges

Dow Jumps 950 Points as U.S.-China Tariff Truce Spurs Broad Market Rally

U.S. stocks surged Monday, driven by renewed optimism after the U.S. and China agreed to slash tariffs for 90 days following high-level negotiations in Switzerland.

The Dow Jones Industrial Average soared 953 points, or 2.3%, recovering nearly all its recent losses. The S&P 500 added 2.6%, and the Nasdaq Composite climbed 3.5%, with all three indexes set for their biggest daily gains since early April.

What’s Driving the Dow’s Rally?

The rally was ignited by news that Washington and Beijing agreed to lower reciprocal tariffs by 115%. U.S. tariffs on Chinese goods dropped from 145% to 30%, while China cut its duties on U.S. imports to 10% from 125%. Treasury Secretary Scott Bessent described the talks as “very productive” and indicated further discussions are scheduled.

Industrial heavyweights and tariff-sensitive stocks led the Dow higher. Caterpillar jumped 4.7%, Boeing gained 1.6%, and 3M advanced nearly 5%. Apple popped 5.3% on reports of a potential iPhone price hike, while tech powerhouses like Microsoft and Salesforce also rose. Coca-Cola and McDonald’s were the few laggards in the index, down 1.9% and 1.4%, respectively.

Are Semiconductors Signaling Broader Strength?

Semiconductor stocks delivered standout performance, with the iShares Semiconductor ETF (SOXX) surging over 6%. Nvidia rallied 5%, On Semiconductor soared 9%, and Dell climbed 7%. The broader tech sector saw Amazon and Tesla both notch gains of more than 7%, while Apple’s advance helped lift the S&P 500 above its 200-day moving average for the first time since March.

Is Oil Joining the Party?

Crude oil also rebounded sharply, with U.S. crude rising 3.4% to $63.10 per barrel and Brent up 3.2% to $65.97. Traders are betting that the tariff de-escalation will revive global economic demand, especially in the energy-intensive industrial sector.

Dow component Chevron gained 1.6%, adding to the sector’s momentum as hopes for a sustained demand recovery lift sentiment. The recovery comes after oil prices hit four-year lows earlier in the month due to global recession fears and rising OPEC+ output.

What’s Next for Traders?

Despite the strong session, several analysts warned that trade-related risks remain. While President Trump hinted at a broader deal and lauded China’s commitment to open its markets, the 90-day window means tariff policy could once again become a headwind. The market also awaits clarity from Federal Reserve officials this week, including Chair Jerome Powell. Traders are pricing in two rate cuts by year-end, with the first likely in September.

Walmart earnings and further China talks remain key watchpoints. For now, traders are embracing the reprieve, but the path ahead could still be uneven.

More Information in our Economic Calendar.