12:21 PM EDT, 05/12/2025 (MT Newswires) -- US equity indexes soared after the US and China reached a deal to reduce tariffs, easing concerns that an all-out trade war between the world's two largest economies would underpin inflation and hurt growth.

The Nasdaq Composite jumped 3.6% to 18,572.5, the S&P 500 rose 2.6% to 5,806.7, and the Dow Jones Industrial Average climbed 2.2% to 42,163.1. Consumer discretionary and technology led the gainers, with consumer staples and utilities among the decliners intraday.

The US and China agreed to temporarily suspend most tariffs on each other, effective Wednesday, following a high-ranking meeting in Switzerland over the weekend. China will reduce its tariffs on US goods to 10% from 125%, while the US will lower duties on Chinese products to 30% from 145%. The new measures are effective for 90 days.

"This is clearly just the start of a broader and more comprehensive negotiations, and we would expect both these tariff numbers to move down markedly over the coming months as deal talks progress," Wedbush Securities analysts, including Dan Ives, said in a note early Monday.

Gold futures sank 3% to $3,244.10 per ounce while the ICE US Dollar Index rose 1.3% to 101.66.

US Treasury yields jumped intraday, with the 10-year up seven basis points to 4.45% and the two-year higher by 9.8 basis points to 3.98%.

In company news, Scale AI, which counts Amazon.com ( AMZN ) among its investors, plans to establish a presence in Saudi Arabia by year-end as part of its expansion in the Middle East, Bloomberg News reported, citing an interview with the company's managing director, Trevor Thompson. Amazon ( AMZN ) shares jumped 7.3% intraday, the top gainer on the Dow.

NRG Energy's ( NRG ) shares soared 24% intraday, the biggest gainer on the S&P 500, after the company reported higher Q1 adjusted earnings and revenue from a year earlier. The company also agreed to acquire CPower and a portfolio of natural gas generation facilities from LS Power Equity Advisors.

West Texas Intermediate crude oil futures advanced 2.1% to $62.29 a barrel.