Wall Street Futures jump as US-China tariff deal lifts global sentiment

US stock index futures rose sharply on Monday after the United States and China agreed to scale back tariffs, easing fears of an escalating trade war that had weighed heavily on global markets in recent weeks.US Treasury Secretary Scott Bessent, following talks with Chinese officials in Geneva, announced that the two nations have agreed to a 90-day pause on additional trade measures. During this period, tariffs will be reduced by over 100 percentage points, bringing them down to 10%.“This marks a pivotal moment in global trade dynamics,” said Aaron Hill, chief analyst at FP Markets. “However, the 90-day timeframe indicates these tariff cuts are a negotiation tactic rather than a permanent resolution, creating uncertainty about long-term trade policies.”The announcement had an immediate impact on market sentiment. At 4:08 a.m. ET:

The CBOE Volatility Index (VIX), commonly referred to as Wall Street’s “fear gauge,” briefly slipped below 20 points for the first time since late March, before recovering slightly to 20.37, as reported new agency Reuters.Major technology and growth stocks moved higher in premarket trading. Nvidia rose 4.6%, Tesla gained 6.7%, and chipmakers Advanced Micro Devices and Marvell Technology advanced 4.9% and 7.5%, respectively.Crude oil prices climbed over 3% following the announcement, boosting energy stocks. Shares of Chevron and Exxon Mobil both rose around 2%.The development comes on the heels of a limited trade agreement between the United States and the United Kingdom, further easing concerns about the global impact of US President Donald Trump‘s reciprocal tariff plans announced on April 2.As of the last close, the S&P 500 had recouped nearly all losses sustained since early April, helped by strong earnings reports and the improving trade outlook.However, not all sectors benefited. Pharmaceutical stocks slipped after President Trump said he plans to reduce US prescription drug prices to align with levels in other high-income countries — which he said were 30% to 80% lower. Pfizer, Eli Lilly, and Johnson & Johnson each dropped more than 2%.Key economic data, including consumer inflation (CPI), producer prices, and retail sales, is due later this week. In addition, several Federal Reserve officials, including Chair Jerome Powell, are scheduled to make public remarks, which could further influence market direction.Retail giants such as Walmart, as well as Cisco and Deere, are expected to report earnings in the coming days.