Most stock markets in the Gulf settled higher on Tuesday, although gains were limited as investors paused to weigh whether a temporary pause in the U.S.- China trade war would lead to a long-lasting agreement.

U.S. Trade Secretary Scott Bessent said neither the U.S. nor China want to see a decoupling in their relationship, as each agreed to lower tariffs for 90 days.

The U.S.-China tariff deal sent the tech-heavy Nasdaq soaring, entering a bull market, and economists are optimistic that the U.S. may dodge a recession.

President Donald Trump claimed a “total reset” of U.S.-China trade relations has been negotiated. The crypto market soared dramatically on May 10 as President Donald Trump claimed that the U.S. had "a very good meeting" with China.

Stock market futures in the U.S. surged on Monday as the U.S. and China agreed to temporarily de-escalate their trade war.

Volkswagen's CFO expects the carmaker's new product launches in China to start improving its performance in the battery-electric vehicle segment by the third quarter of 2026, he said in an interview with the Financial Times on Tuesday.

U.S. stocks soared Monday as investors celebrated major progress on a U.S.-China trade deal. The Dow added over 1,100 points, exiting correction territory, while the Nasdaq Composite began a fresh bull market.

Bettors on Polymarket and Kalshi slashed their recession outlooks below 50% after the US-China tariff deal was announced over the weekend.