01:32 PM EDT, 05/12/2025 (MT Newswires) -- US equity indexes soared after a deal between the United States and China to reduce tariffs pushed government bond yields notably higher as the prospects of a continuing all-out trade war between the world's two largest economies deteriorated.

The Nasdaq Composite jumped 4.1% to 18,669.8, the S&P 500 rose 3% to 5,829.9, and the Dow Jones Industrial Average climbed 2.6% to 42,306.1.

Consumer discretionary and technology led the gainers intraday. Shares of chipmaker Nvidia (NVDA) were up more than 5% intraday. Qualcomm (QCOM), Broadcom (AVGO), and Advanced Micro Devices (AMD) climbed at least 5% each. Semiconductor solutions provider Marvell Technology (MRVL) soared 8.7%.

The US and China agreed to 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. "The baseline view heading into the weekend was some de-escalation of US/China tariffs and the agreement for more talks....instead in a dream scenario this morning Bessent/Chinese came out of these talks with massive cuts to reciprocal tariffs."

Gold futures sank 3.3% to $3,232.02 per ounce while the ICE US Dollar Index rose 1.5% to 101.79.

US Treasury yields jumped intraday, with the 10-year up 7.2 basis points to 4.45% and the two-year rate higher by 10 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 8% intraday, the top gainer on the Dow.

NRG Energy's ( NRG ) shares soared 25% 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 2.2% to $62.34 a barrel.

While the US-China tariff reductions boosted prospects for global economic growth, a plan for the Organization of the Petroleum Exporting Countries and allied producers to accelerate crude oil output hikes in May and June capped price gains, Reuters cited analysts in a news report.