U.S. stock futures saw a significant rise on Sunday evening after the White House announced a trade agreement with China, following high-level talks in Geneva. No details were shared, but the news helped boost investor sentiment.
By 7:07 PM ET, Dow futures rose by 1%, reaching 41,736 points, S&P 500 futures increased by 1.2% to 5,745 points, and Nasdaq futures climbed 1.5%, reaching 30,438.75 points. The gains followed a positive week on Wall Street, driven by hopes for a U.S.-China trade deal and strong earnings reports.
In addition to trade talks, the first-quarter earnings season has been positive, with major companies such as Home Depot, Palo Alto Networks, Lowe’s, Target, and Snowflake scheduled to report their results soon.
U.S.-China Trade Deal Announced
On Sunday afternoon, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer confirmed that a trade deal had been reached with China. However, they did not disclose further details. Greer stated that the deal aims to address the U.S.-China trade deficit and noted the speed of the agreement, suggesting that the differences between the two sides might not have been as significant as previously thought.
Bessent also highlighted the substantial progress in trade talks, mentioning that he had spoken with President Donald Trump, and a full briefing would take place on Monday morning. Chinese state media confirmed that a joint statement on the trade talks would be released on Monday. Li Chenggang, China’s vice minister of Commerce, called the agreement “big news and good news for the world.”
The U.S. currently imposes a 145% tariff on Chinese imports, but reports suggest that this could be reduced to around 50%. President Trump recently stated that a figure in the 80% range “seems right.” Analysts view the announcement as a positive development, with Wedbush tech analyst Dan Ives noting that it exceeded expectations heading into the weekend.
Trump Plans to Cut Drug Prices
In a separate development, President Trump announced plans to sign an executive order on Monday to lower prescription drug and pharmaceutical prices by 30% to 80%. He called it one of the most significant executive orders in U.S. history, aimed at making drug prices fairer for Americans.
In related news, Eli Lilly’s Zepbound weight loss drug has reportedly outperformed Novo Nordisk’s Wegovy in a recent clinical trial.
India and Pakistan Agree to Ceasefire
In another important geopolitical update, India and Pakistan agreed to a ceasefire after days of rising tensions. President Trump credited U.S.-led mediation for facilitating the agreement.
“I’m pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE,” Trump said on Saturday. While Pakistan praised the U.S. role, India downplayed it. The ceasefire held for 24 hours, despite accusations from both sides of violations.
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