Markets are off to a strong start this week, boosted by news that the U.S. and China have agreed to sharply reduce tariffs for 90 days to allow time for renewed trade negotiations.

U.S. equities continued to rebound higher last week with support from solid corporate earnings reports, resilient labor market data, and rising optimism for a gradual de-escalation in trade tensions, though hard details on trade deals remain sparse and new tariff announcements are keeping a lid on investor enthusiasm.

U.S. equities managed to rally back sharply last week and recoup some of the year-to-date losses as the White House signaled potential to de-escalate in the trade war against China, and President Trump walked back his comments about the potential to fire Fed Chairman Jerome Powell.

U.S. stock markets concluded the holiday-shortened week with notable declines, as escalating trade tensions and economic uncertainties weighed heavily on investor sentiment. The S&P 500 and Nasdaq Composite each fell by approximately 1.5%, while the Dow Jones Industrial Average dropped 2.7%.

By several measures, the last two weeks have marked one of the most eventful stretches in market history including one of the largest historical one-day stock rallies on Wednesday in response to the Trump Administration’s 90-day pause on reciprocal tariffs after a brutal sell-off in the prior week.