The Globe and Mail reports in its Tuesday edition that Wall Street rallied sharply on Monday, with the S&P 500 hitting its highest levels since early March, as a U.S.-China agreement to temporarily slash tariffs brought some hopes for the easing of a global trade war. A Reuters dispatch to The Globe says the Toronto Stock Exchange also rose, but was held back by a decline in gold prices and some interest-rate-sensitive stocks, which were hampered by a sharp rise in North American bond yields. The U.S. and China announced on Monday that they would slash steep tariffs on each other for 90 days. The U.S. said it will cut tariffs imposed on Chinese imports to 30 per cent from 145 per cent while China said it would cut duties on U.S. imports to 10 per cent from 125 per cent. Investors showed some relief by favouring riskier assets and turning away from more defensive bets, but they were still left waiting for clarity on where tariffs would ultimately settle. The S&P/TSX Composite Index ended up 174.44 points at 25,532.18. While the TSX bounce was not as impressive as in the U.S., BMO chief economist Douglas Porter noted there is good reason for investors to feel more optimistic on this side of the border as well.