Dow Jones Today: Stock Futures Soar as US, China Agree to 90-Day Pause on Massive Tariffs; Dow Set to Gain More Than 1,000 Points

Stock futures surged Monday morning after the U.S. and China agreed to slash tariffs on one another for 90 days while the two sides work toward a broader trade agreement.

Futures tied to the Dow Jones Industrial Average were recently up 2.5%, or more than 1,000 points, while S&P 500 futures jumped 3% and Nasdaq futures soared 3.9%. Stocks were treading water at the end of last week—the major indexes closed slightly lower for the week, the first time in three weeks they lost ground—as investors anxiously awaited the results of talks between U.S. and Chinese officials over the weekend.

Treasury Secretary Scott Bessent, who was in Switzerland for the talks, said Monday that so-called “reciprocal” tariffs that each country had imposed on one another at a rate of 125% would be cut to 10% during the 90-day period. A separate 20% tariff that President Donald Trump imposed on China as part of efforts to stem the flow of fentanyl remains in place.

Shares of the world’s largest technology companies were sharply higher across the board in premarket trading, led by gains of 8% for Tesla (TSLA) and Amazon (AMZN). Apple (AAPL) and Meta Platforms (META) each climbed about 6%, while chipmakers Nvidia (NVDA) and Broadcom (AVGO) added 4.5% and 6% respectively. Microsoft (MSFT) and Alphabet (GOOG) each tacked on more than 2%.

Chip stocks were among the big gainers this morning. Marvell Technology (MRVL). Micron (MU) and ON Semiconductor (ON) each jumped more than 8%, while Microchip Technology (MCHP) rose about 10%. The VanEck Semiconductor ETF (SMH) was up 6%.

Among other noteworthy movers, delivery companies United Parcel Services (UPS) and FedEx (FDX) jumped 5% and 6%, respectively, while shares of Chinese e-commerce giant Alibaba (BABA) added 6%, Shopify (SHOP) rose 10% and Best Buy (BBY) soared 11%.

Pharmaceutical companies were losing ground this morning after Trump said in a post on Truth Social Sunday evening that he would sign an executive order Monday morning to ensure the U.S. pays the same price as the lowest costs paid by any other nation. Eli Lilly (LLY) dropped 3.5%, while Pfizer (PFE) and Merck (MRK) each fell more than 2%.

Shares of Newmont Mining (NEM), the world’s largest producer of gold, tumbled more than 5% as the price of the precious metal slid. Gold futures—which were trading near a record high around $3,500 an ounce a week ago as investors sought safe havens amid concerns about tariffs—fell 3.5% this morning to $3,230.

West Texas Intermediate futures, the U.S. crude oil benchmark, were up nearly 4% at $63.40, extending a recent rally after oil prices hit a four-year lower in late April. Shares of oil majors Exxon Mobil (XOM) and Chevron (CVX) were each up about 3% this morning. 

The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, notably mortgages, was at 4.46% this morning, up from 4.38% at Friday’s close. The U.S. dollar index, which measures the performance of the dollar against a basket of foreign currencies, rose 1.3% to 101.63, trading at its highest level in a month.

Bitcoin was little changed from its late-Friday levels at just under $104,000.