The United States and China reached a better-than-expected dealto temporarily slash tariffs, sending stocks and the U.S. dollar sharply higher, as the world's two biggest economies seek to end a damaging trade war that has stoked fears of recession.

The U.S. and China agreed to a 90-day reduction in tariffs—dropping U.S. tariffs on Chinese goods from 145% to 30%.  While major retailers and many