U.S. stock futures surge as U.S.-China agree to trade deal.
U.S. stock futures surged Monday after the White House announced a trade deal with China had been reached, with both sides agreeing to lower their respective levies.
futures rose 665 points, or 3.3%.
Gains in futures come after a positive week on Wall Street, as the prospect of a Sino-U.S. trade deal lifted spirits and spurred buying into risk-driven assets.
## U.S.-China tariffs to be cut
U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said on Sunday afternoon that a trade deal had been struck with China after negotiations over the weekend in Geneva, and more substance surrounding the agreement was subsequently announced on Monday.
The two sides have agreed to a 90-day pause to soaring tariffs placed on each other, Washington has moved to slash tariffs on China to 30% and Beijing’s duties on U.S. imports are being cut to 10%, the nations said in a rare joint statement following high-stakes trade talks over the weekend.
Heading into the talks, U.S. President Donald Trump had raised tariffs on China to at least 145%, leading China to respond with retaliatory levies on American imports of 125%.
"The consensus from both delegations is that neither side wanted a decoupling," U.S. Treasury Secretary Scott Bessent said in a news conference.
More trade negotiations are planned between the two, while both sides may conduct working-level consultations on relevant economic and trade issues.
Investors, who have been worried that the trade spat could spiral into a global crisis that threatened economic activity and increased uncertainty for businesses, have welcomed the changes.
## India and Pakistan ceasefire
In another potential market-moving development, India and Pakistan agreed to a ceasefire after increased tensions in recent days. U.S. President Donald Trump said U.S.-led mediation allowed cooler heads to prevail.
“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE,” Trump said on Saturday. Pakistan praised the U.S.’s role in the ceasefire, although India downplayed it.
The ceasefire appeared to be holding, although both India and Pakistan had accused each other of violations.
## Trump to slash pharma prices
Elsewhere, the pharmaceutical sector is likely to be in focus Monday after Trump said on Sunday that he plans to sign an executive order lowering prescription drug and pharmaceutical prices by between 30% and 80%.
Trump said he will "be signing one of the most consequential executive orders in our Country’s history," in the White House on Monday morning.
Trump claimed that pharma prices will "rise throughout the world" in order to bring fairness to America.
In other pharma news, Eli Lilly and Company (NYSE:[LLY](https://www.investing.com/apps/?screen=instrument&instrument_id=273)) said that its Zepbound weight loss drug had outperformed rival Novo Nordisk’s (NYSE:[NVO](https://www.investing.com/apps/?screen=instrument&instrument_id=39229)) Wegovy in a recent head-to-head trial.
There are more earnings to digest this week, in what has generally been a mostly positive first quarter, with prints from Home Depot (NYSE:[HD](https://www.investing.com/apps/?screen=instrument&instrument_id=8064)), Palo Alto Networks (NASDAQ:[PANW](https://www.investing.com/apps/?screen=instrument&instrument_id=41268)), Lowe’s (NYSE:[LOW](https://www.investing.com/apps/?screen=instrument&instrument_id=10549)), Target (NYSE:[TGT](https://www.investing.com/apps/?screen=instrument&instrument_id=8180)), and Snowflake (NYSE:[SNOW](https://www.investing.com/apps/?screen=instrument&instrument_id=1166012)) due in the coming days.
## Crude soars on trade deal
Oil prices rose Monday, building on last week’s sharp gains as the announcement of a China-U.S. trade deal raised hope that the world’s two largest crude users may be moving toward a resolution of their dispute.
At 08:00 ET, Brent futures climbed 2.5% to $65.52 a barrel, and U.S. West Texas Intermediate crude futures rose 2.6% to $62.62 a barrel.
Both contracts rose by more than 4% last week on optimism over a potential de-escalation in Trump’s tariff agenda.
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