LIVE MARKETS-Risk-on revelers rejoice as US-China reach a deal

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RISK-ON REVELERS REJOICE AS U.S.-CHINA REACH A DEAL

The S&P 500 index .SPX hit its highest level since early March on Monday as a crucial U.S.-China agreement to slash tariffs put investors at ease after weeks of uncertainty around the future of global trade.

The U.S. will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the two countries said on Monday. The new measures are effective for 90 days.

With this, the Dow .DJI rallied 2.8%, the SPX jumped more than 3%, and the Nasdaq .IXIC surged more than 4%.

Nearly all S&P 500 sectors ended green with consumer discretionary .SPLRCD, up more than 5.5%, and tech .SPLRCT, up more than 4.5%, posting the biggest jumps.

Under the surface, transports .DJT and chips .SOX were especially strong with both surging around 7%.

Amid the risk-on sentiment and waning uncertainty, defensive sectors lagged. Real estate .SPLRCR and staples .SPLRCS ended just above flat. Utilities .SPLRCU finished red.

The CBOE market volatility index .VIX fell below 19.00, and is on pace for its lowest close since March 25.

And gold stocks .HUI lost some luster. The HUI slid more than 8%.

Meanwhile, on the charts, the three major indexes ended back above their 200-day moving averages (DMA).

It was the Dow's first close above this closely followed long-term moving average since April 2. It was the S&P 500's first close above its 200-DMA since March 25, and the Nasdaq ended above its 200-DMA for the first time since March 5.

With Monday's strength, the SPX is now only down 4.88% from its February 19 record close. The Dow is down 5.78% from its December 4 record finish, and the Nasdaq is down 7.26% from its December 16 record close.

On April 8, the cycle closing lows, these indexes finished down 18.9%, 16.4%, and 24.3% from their record closes.

In any event, the latest read on consumer prices is due on Tuesday. Expectations call for April month-over-month headline CPI to heat up to 0.3% from -0.1% last month.

Here is a snapshot of where markets stood just shortly after 4 p.m. ET:

(Terence Gabriel)

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MONDAY'S EARLIER LIVE MARKET POSTS:

LARGE BANKS, TECH GUIDANCE MOSTLY POSITIVE THIS SEASON CLICK HERE

DOLLAR REBOUND A KEY SIGN FOR EQUITY STRENGTH CLICK HERE

TREASURY YIELDS JUMP, FED RATE CUT EXPECTATIONS PUSHED BACK CLICK HERE

ABU DHABI'S GOLDEN GOOSE - ADNOC'S DUAL ENERGY STRATEGY CLICK HERE

DID SOMEONE SAY "RECESSION"? CLICK HERE

RISK-ON IS OFF THE LEASH CLICK HERE

U.S. STOCK FUTURES ROCKET ON U.S.-CHINA DEAL TO REDUCE TARIFFS CLICK HERE

EUROPEAN TRAVEL RETAIL: RIPE FOR CONSOLIDATION CLICK HERE

DUSTING OFF UKRAINE CEASEFIRE BASKETS CLICK HERE

EUROPEAN BANKS: A RESILIENT EARNINGS SEASON CLICK HERE

STAY BULLISH! US EQUITIES LIKELY TO OUTPERFORM EUROPE CLICK HERE

US-CHINA DEAL LIFTS MINERS, AUTOS, LUXURY; DRAGS DEFENCE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES RALLY, PHARMA DOWN CLICK HERE

THE DEVIL'S IN THE LACK OF DETAIL CLICK HERE