The U.S. and China agreed to cut tariffs by 115% for 90 days
Stock futures are surging to kick off the week, after weekend talks in Switzerland saw the U.S. and China reach a surprise deal to slash tariffs by 115% for 90 days. U.S. tariffs on Chinese goods are now 30%, and Chinese duties on U.S. goods are now 10%. Dow Jones Industrial Average (DJIA) futures are up nearly 1,100 points, while Nasdaq-100 (NDX) and S&P 500 Index (SPX) futures are also sharply higher. U.S. Treasury Secretary Scott Bessent called the negotiations “very productive,” with more talks are expected in the coming weeks.
Continue reading for more on today's market, including:
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.5 million call contracts and over 1.3 million put contracts exchanged on Friday. The single-session equity put/call ratio came in at 0.53, while the 21-day moving average stayed at 0.59.
- Amazon.com Inc (NASDAQ:AMZN) is up 8.4% before the bell, as all members of the "Magnificent Seven" surge in response to the U.S.-China mutual tariff-cutting agreement. Wedbush called the deal “very bullish” for the sector, citing reduced supply chain concerns. AMZN is down 12% year-to-date.
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Alibaba Group Holding Ltd (NYSE:BABA) and other U.S.-listed Chinese stocks are also heating up following the news. BABA was last seen 6.2% higher ahead of the open, looking to add to its 59.1% year-over-year lead.
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Eli Lilly and Co (NYSE:LLY) is down 3.4% before the open, after reports that President Trump plans to reinstate a drug pricing policy aimed at cutting U.S. pharmaceutical costs. Coming into today, LLY was down 4.9% in 2025.
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Key inflation data is due out
this week, including consumer price index (PPI) and producer price index (PPI) readings.
Overseas Markets Rally on U.S.-China Trade Deal
Asian bourses rose across the board today, cheering the U.S.-China Trade deal. Hong Kong’s Hang Seng paced the region with a 3% gain on a boost from tech stocks. China’s Shanghai Composite added 0.8% and South Korea’s Kospi tacked on 1.2%, while Japan’s Nikkei rose a more modest 0.4%.
European markets are also taking their cues from the trade deal tailwinds, with shipping giant Maersk up double digits in response. At last check, London’s FTSE 100 is 0.6% higher, while the French CAC 40 and German DAX are 1.4% and 0.7% higher, respectively.