AppLovin Corp (NASDAQ:APP), Salesforce, Inc. (NYSE:CRM), Datadog, Inc. (NASDAQ:DDOG) and Atlassian Corporation (NASDAQ:TEAM) stocks traded higher Monday after the U.S. and China agreed to a temporary reduction in most tariffs on each other’s goods.

What To Know: The trade deal will lower U.S. duties on Chinese goods from 145% to 30% and Chinese tariffs on U.S. imports from 125% to 10% for a three-month period, according to The Washington Post.

On the U.S. side, the talks were led by Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, while Vice Premier He Lifeng led the discussions for China.

Bessent said in a news conference, "The consensus from both delegations this weekend is that neither side wants a decoupling, and what had occurred with these very high tariffs was the equivalent of a trade embargo, and neither side wants that.” Bessent further added that both countries want more balanced trade.

The existing 30% U.S. tariff on Chinese goods consists of a 10% base rate plus a 20% additional tariff added by President Donald Trump in response to concerns over China's role in producing fentanyl-related chemicals.

The U.S. is also reportedly urging China to increase its purchases of American products.

Software stocks may be rising as the tariff reduction fuels optimism that improved U.S.-China relations could support global economic growth.

Price Action: Applovin stock closed 5.89% higher at $347.90, Salesforce shares closed 4.87% higher at $288.82, Datadog shares closed 5.14% higher at $113.42 and Atlassian stock closed 7.82% higher at $223.75.

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Image: This illustration was generated using artificial intelligence via Midjourney.