US stock futures jumped sharply on Monday, with Nasdaq 100 E-mini Futures up 3.73% and Dow Jones E-mini Futures gaining 2.25%, after the United States and China announced a major breakthrough in trade talks held in Geneva. Both sides agreed to slash reciprocal tariffs for 90 days, easing one of the longest-running trade tensions in recent years.
As per the announcement, the US will reduce tariffs on Chinese goods from 145% to 30%, while China will lower duties on American imports from 125% to 10%. This pause in the tariff war is expected to revive nearly $600 billion in bilateral trade and calm inflationary and supply chain concerns globally.
Speaking after the negotiations, US Treasury Secretary Scott Bessent emphasized the mutual interest in “balanced trade,” stating that both nations represented their national priorities well. The talks also marked the first formal economic dialogue between senior officials since Donald Trump’s return to the White House.
Financial markets reacted swiftly, with risk sentiment returning. Analysts believe the move significantly lowers the odds of a global recession and opens the door for broader economic cooperation.
