Wall Street Futures Rise Sharply After U.S.-China Trade Agreement

U.S. stock futures surged early Monday after the White House confirmed a trade agreement with China, with both countries agreeing to ease tariffs. As of 06:30 ET (10:30 GMT), Dow Jones futures were up 975 points (2.4%), S&P 500 futures rose 170 points (3%), and Nasdaq 100 futures gained 785 points (3.9%).

The rally follows a strong week on Wall Street, fueled by optimism around a U.S.-China deal that has boosted risk sentiment across global markets.

Tariff Relief Sparks Optimism

Following weekend negotiations in Geneva, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced that a deal had been finalized. Both sides agreed to a 90-day tariff truce. The U.S. will lower its tariffs on Chinese goods to 30%, while China will cut duties on American imports to 10%.

Prior to the talks, President Trump had hiked tariffs to 145%, prompting retaliatory moves from Beijing. “The consensus from both delegations is that neither side wanted a decoupling,” Bessent stated during a press conference.

More talks and working-level discussions are expected in the coming weeks, keeping trade developments at the forefront for investors concerned about global economic uncertainty.

Alberto Matellan, Managing Director at La Financière Responsable, noted: “Markets have been weighed down by tariff fears and Trump’s aggressive rhetoric, but we’re starting to see signs of stabilization. Trust may be hard to rebuild, but clarity in policy can restore confidence.”

Geopolitical Relief: India and Pakistan Ceasefire

In another boost for global markets, India and Pakistan agreed to an immediate ceasefire after heightened tensions. President Trump credited U.S.-led mediation for helping both sides reach the agreement. While Pakistan praised the effort, India was more restrained in its response. The ceasefire appeared to be holding as of Monday morning.

Pharma Sector in Focus: Trump Targets Drug Prices

President Trump also announced plans to sign a major executive order on Monday aimed at slashing prescription drug prices by 30% to 80%, calling it “one of the most consequential executive orders in our Country’s history.” Trump argued the move would raise global drug prices to create a more balanced pricing structure for U.S. consumers.

Meanwhile, Eli Lilly ( LLY) reported that its weight-loss drug Zepbound outperformed Novo Nordisk’s (NVO) Wegovy in a head-to-head clinical trial, potentially shaking up the competitive obesity drug market.

Earnings Season Continues

Investors are also watching corporate earnings, with key reports this week from Home Depot (HD), Palo Alto Networks (PANW), Lowe’s (LOW), Target (TGT), and Snowflake (SNOW). Overall, Q1 earnings have been largely positive, supporting broader market sentiment.

Oil Prices Climb on Trade Deal Optimism

Crude oil extended last week’s gains on hopes that a resolution between the world’s two largest economies could boost global demand. At 06:30 ET, Brent crude rose 2.9% to $65.73 per barrel, while WTI crude climbed 3% to $62.87. Both benchmarks had gained over 4% the previous week amid de-escalation signals from Washington.