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U.S. stock futures jumped early Monday after the U.S. and China agreed to temporarily slash tariffs following negotiations over the weekend in Switzerland.
Futures for the 30-stock index sprang up 1,010 points, or 2.5% to 42,333.
Futures for the S&P 500 index jumped 172.75 points, or 3%, to 5,850.75
Futures for the NASDAQ flew 789.5 points, or 3.9%, to 20,926.25.
U.S. Treasury Secretary Scott Bessent said on Monday that talks with China had been “very productive” and both countries had agreed to cut “reciprocal” tariffs by 115% for 90 days. That brings U.S. tariffs on Chinese goods down to 30%, and Chinese tariffs on U.S. imports to 10%.
Bessent told reporters on Monday that he expects to meet once again with representatives from Beijing in the “next few weeks” to iron out a bigger agreement.
Best Buy, which sells electronics and appliances vulnerable to tariffs, popped 8% in the premarket to lead S&P 500 gains. Dell Technologies and On Semiconductor also climbed more than 8%, while Amazon and Apple advanced more than 8% and 7%.
Tensions between China and the U.S. soared after President Donald Trump last month unveiled 145% tariffs on imported goods from China. Beijing then retaliated with 125% duties of its own targeting U.S. goods.
The S&P 500 nearly closed in bear market territory — down more than 20% from a record set in February — following the “liberation day” announcement. Stocks quickly rebounded after Trump cut tariffs on the rest of the world, but gains were held in check as investors awaited progress on U.S.-China trade negotiations.
Investors this week will look for signs on how the trade tensions are impacting the economy. The consumer price index reading for April is due Tuesday morning, while retail sales and the producer price index — another inflation measure — are set for release on Thursday.
In Japan, the Nikkei 225 index gained 0.4% Monday, while in Hong Kong, the Hang Seng shot higher 3%.
Oil prices zoomed $2.51 to $63.53 U.S. a barrel.
Gold prices swooned $122.10 to $3,221.96 U.S. an ounce.