U.S.-China Tariff Deal Revitalizes Global Markets Amid Trade Tensions

U.S. stock futures surged after a U.S.-China agreement to reduce tariffs, calming fears of a trade war. Treasury Secretary Scott Bessent announced a 90-day pause and significant tariff cuts. Major indices and stocks rose, despite lingering uncertainties about long-term trade policies. Retail inflation data is anticipated this week.

U.S. stock futures experienced a significant upswing on Monday following an announcement from the United States and China about a mutual agreement to reduce tariffs. This development has soothed some of the heightened concerns of a possible all-out trade war that had been unsettling global markets.

After discussions in Geneva, U.S. Treasury Secretary Scott Bessent revealed that both nations had concurred on a 90-day moratorium on certain measures, with tariffs set to decrease more than 100 percentage points to 10%. FP Markets' chief analyst Aaron Hill described this as "a pivotal moment in global trade dynamics."

The Dow E-minis, S&P 500 E-minis, and Nasdaq 100 E-minis all saw notable increases, with futures related to the Russell 2000 small cap index rising by 3.5%. Meanwhile, the CBOE Volatility index, often referred to as Wall Street's fear gauge, briefly dipped below 20 points, reaching its lowest since late March.