FX.co ★ US Futures Soar as US and China Agree to Lower Tariffs

On Monday, U.S. stock futures experienced a notable upswing. Contracts for the S&P 500 increased by 2.8%, futures for the Nasdaq 100 rose by 3.6%, and the Dow Jones futures surged by over 900 points. This upward momentum followed an announcement from the United States and China regarding a significant 90-day tariff reduction after trade discussions held in Switzerland over the weekend. The U.S. revealed plans to cut tariffs on Chinese products from 145% to 30%, while China agreed to decrease duties on U.S. imports from 125% to 10%, all for a three-month period. This decision has bolstered investor confidence, indicating a mutual commitment from both nations to ease trade tensions and prompting a shift back towards riskier assets. These developments arrive on the heels of a declining market week, which saw the S&P 500 fall by 0.7%, the Nasdaq decrease by 0.6%, and the Dow dip by approximately 0.2%. In the coming days, the focus will pivot to critical economic indicators, with the Consumer Price Index (CPI) and Producer Price Index (PPI) anticipated to offer insights into the trade war's effects on inflation, accompanied by updates on retail sales and industrial production.