Wall Street’s key stock indices surged sharply on Monday as the United States and China reached a deal to reduce tariffs.

China and the United States announced a 90-day truce in their trade war, agreeing to cut most of their tariffs.

The US will cut tariffs on Chinese goods to 30% from as high as 145%, while China will slash its tariffs on US goods to 10% from 125%, a joint statement said.

At the opening bell, the Dow Jones Industrial Average rose 649.7 points, or 1.57%, to 41,899.05. The S&P 500 rose 147.3 points, or 2.60%, to 5,807.2, while the Nasdaq Composite rose 745.6 points, or 4.16%, to 18,674.555.

Following the announcement of the trade deal, the value of the US dollar surged against other currencies and Treasury yields advanced.

The latest trade deal follows an agreement the US announced last week with the United Kingdom that will bring down tariffs on many UK imports to 10%.

In the bond market, the yield on the 10-year Treasury rose to 4.45% from 4.37% late on Friday. The 2-year yield rose to 3.99% from 3.88%.

Gainers and Losers

Apparel stocks jumped with Lululemon leaping 10% and Nike rising 7.3%.

Retailers such as Best Buy and Amazon gained at least 7% each.