Dow Jones Surges 54.36% in Trading Volume Ranking 344th as U.S.-China Trade Truce Boosts Market

On May 12, 2025, the Dow Jones Industrial Average (Dow) closed with a trading volume of 3.71 billion, marking a 54.36% increase from the previous day. This surge placed the Dow at the 344th position in terms of trading volume for the day. Ergo, the Dow experienced a 5.09% increase, marking its third consecutive day of gains, with a total increase of 8.89% over the past three days.

The recent surge in the Dow can be attributed to the positive developments in the U.S.-China trade negotiations. The announcement of a 90-day truce in the trade war between the two largest economies in the world has significantly boosted investor confidence. This truce involves a temporary reduction in tariffs, which has been welcomed by economists who had previously warned about the potential economic repercussions of prolonged tariff disputes.

The trade deal has had a ripple effect across various sectors. Crude oil prices have risen due to expectations of increased fuel consumption in a less tariff-burdened global economy. The U.S. dollar has strengthened against major currencies, and Treasury yields have increased as the Federal Reserve is now expected to implement fewer interest rate cuts this year. Gold prices, on the other hand, have decreased as investors feel less need for safe-haven assets.

The temporary reduction in tariffs is expected to add 0.4 percentage points to the U.S. economy's growth this year, which is significant given the economic slowdown in the first quarter. The 90-day pause allows for further negotiations and provides a much-needed respite for retailers and suppliers to prepare for the upcoming shopping seasons. However, the process remains slow and uncertain, with potential challenges ahead in the negotiations.