General Motors (GM) stock is soaring 5.47% in pre-market trading on Monday, as the broader U.S. stock market rallies following a significant de-escalation in trade tensions between the United States and China. The surge in GM's stock price comes amid a wider boost for automakers and the overall market, driven by the dramatic lowering of tariffs between the two economic giants.
The breakthrough in US-China trade relations came after a weekend of negotiations in Geneva, where top trade officials from both countries agreed to reduce tariffs by 115 percentage points. This move has effectively ended the month-long trade war that had deeply concerned American businesses, consumers, and investors. The Dow Jones Industrial Average is set to open more than 1,000 points higher, with the S&P 500 and Nasdaq Composite also posting significant gains.
The auto industry, in particular, is benefiting from this positive development. Alongside General Motors' pre-market surge, other automakers are also seeing substantial gains. Stellantis, the maker of Jeep and Chrysler, is up 9%, while Ford has risen 2%. The easing of trade tensions is expected to alleviate pressure on global supply chains and potentially reduce costs for automakers, who have been grappling with various challenges in recent years. As the market shows renewed appetite for riskier assets, investors appear optimistic about the prospects for the auto industry in a more stable trade environment.
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