U.S. stock markets are poised for a significant rebound today, Monday, May 12, 2025, driven by optimism surrounding the latest U.S.-China trade negotiations. Futures indicate a strong open:

• S&P 500: Futures up 1.15%, suggesting a possible open above the 5,700 mark.

• Dow Jones Industrial Average: Futures up 401 points (0.97%).

• Nasdaq Composite: Futures up 1.45%.

These gains are supported by reports of "substantial progress" in the U.S.-China trade talks held in Switzerland. President Trump described the negotiations as a "hard reset," with both sides committing to continuing discussions and establishing a trade consultation mechanism. While no immediate tariff reductions have been confirmed, the positive tone has lifted investor sentiment.  

Furthermore, global geopolitical developments are contributing to market optimism. Notably, a ceasefire agreement between India and Pakistan, along with reports of upcoming peace talks between Russia and Ukraine, are providing additional support to the markets. 

Investors are also eyeing the release of key economic data this week, including the Consumer Price Index (CPI), the Producer Price Index (PPI), retail sales figures, and consumer sentiment reports. Speeches from Federal Reserve officials, including Chairman Powell, are anticipated to provide additional insight into the economic outlook. 

While today's rally is promising, it is important to note that the S&P 500 has faced resistance around the 5,700 level in recent sessions. A sustained move above this threshold will likely depend on the outcomes of the trade talks and upcoming economic indicators.