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Traders work on the floor at the New York Stock Exchange.
Brendan McDermid | Reuters
U.S. stock futures jumped early Monday after the U.S. and China agreed to temporarily slash tariffs following negotiations over the weekend in Switzerland.
Dow Jones Industrial Average futures gained 1,117 points, or 2.6%. S&P 500 futures climbed 3.1%, and Nasdaq-100 futures surged 4%.
U.S. Treasury Secretary Scott Bessent said on Monday that talks with China had been "very productive" and both countries had agreed to cut "reciprocal" tariffs by 115% for 90 days. That brings U.S. tariffs on Chinese goods down to 30%, and Chinese tariffs on U.S. imports to 10%. Bessent told CNBC's "Squawk Box" on Monday that he expects to meet once again with representatives from Beijing in the "next few weeks" to iron out a bigger agreement.
Best Buy, which sells electronics and appliances vulnerable to tariffs, popped 8% in the premarket to lead S&P 500 gains. Dell Technologies and On Semiconductor also climbed more than 8%, while Amazon and Apple advanced more than 8% and 7%.
Tensions between China and the U.S. soared after President Donald Trump last month unveiled 145% tariffs on imported goods from China. Beijing then retaliated with 125% duties of its own targeting U.S. goods.
"We believe peak uncertainty over trade has passed, but market volatility is likely to stay," UBS head of fixed income Kurt Reiman wrote in a Monday note. "Our base case remains that the effective US tariff rate (ex-China) will moderate toward 15% by year-end."
The S&P 500 nearly closed in bear market territory — down more than 20% from a record set in February — following the "liberation day" announcement. Stocks quickly rebounded after Trump cut tariffs on the rest of the world, but gains were held in check as investors awaited progress on U.S.-China trade negotiations.
Should the morning's futures gains hold through the close, the S&P 500 would be near positive territory for the year.
Commerce Secretary Howard Lutnick said Sunday that the 10% baseline tariff rate on imports from other countries is likely to "be in place for the foreseeable future," echoing Trump's comments from days prior.
All three major averages are coming off their first losing week in three. The S&P 500 and Nasdaq Composite shed 0.5% and 0.3%, respectively. The Dow slipped 0.2% last week.
Investors this week will look for signs on how the trade tensions are impacting the economy. The consumer price index reading for April is due Tuesday morning, while retail sales and the producer price index — another inflation measure — are set for release on Thursday.
Bessent says he expects to meet with China again in 'next few weeks'
US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer speak to the media after talks between seniors US and Chinese officials on tariffs at the residence of the permanent Swiss ambassador to the United Nations in Geneva on May 11, 2025.
Valentin Flauraud | Afp | Getty Images
U.S. Treasury Secretary Scott Bessent on Monday said he expects to continue talks with China in the near-term to iron out a more concrete trade agreement.
"I would imagine in the next few weeks we will be meeting again to get rolling on a more fulsome agreement," Bessent told CNBC's "Squawk Box" on Monday.
— Brian Evans
Pharma stocks fall after Trump says order to lower drug costs coming
FILE PHOTO: Bottles of drugs sit on the shelf at the Rock Canyon Pharmacy, in Provo, Utah, U.S., May 9, 2019.
George Frey | Reuters
Hong Kong stocks surge nearly 3% after U.S. and China unveil details of trade deal
Asia-Pacific markets rallied Monday after China and the U.S. announced a trade deal, including a 90-day pause on tariffs and a drop in reciprocal tariffs by 115 percentage points.
Hong Kong stocks led gains in the region with the Hang Seng Index surging 2.98% to end the day at 23,549.46, while the Hang Seng Tech index advanced 5.16% to 5,447.35, their highest levels since March 27.
Meanwhile, mainland China's CSI 300 index increased 1.16% to end the day at 3,890.60.
Indian stocks also saw massive gains following the ceasefire between India and Pakistan over the weekend. The arch rivals were involved in intense firing — the worst in nearly three decades — with both sides exchanging fire with missiles and drones.
The benchmark Nifty 50 surged 3.49% while the BSE Sensex gained 3.38% as at 2. p.m. local time.
Japan's benchmark Nikkei 225 ended the day 0.38% higher at 37,644.26 while the broader Topix index added 0.31% to 2,742.08.
In South Korea, the Kospi index advanced 1.17% to close at 2,607.33 while the small-cap Kosdaq moved up 0.4% to 725.40.
Over in Australia, the benchmark S&P/ASX 200 pared gains to end the day flat at 8,233.50.
— Amala Balakrishner
U.S. and China suspend most tariffs in dramatic thawing of tensions
U.S. Secretary of the Treasury Scott Bessent and U.S. Trade Representative Jamieson Greer address the media after trade talks with China in Geneva, Switzerland, May 11, 2025.
Martial Trezzini | Via Reuters
The U.S. and China on Monday agreed to suspend most tariffs on each other's goods in a move that shows a major thawing of trade tensions between the world's two largest economies.
The trade agreement means that "reciprocal" tariffs between both countries will be cut from 125% to 10%. The U.S.' 20% duties on Chinese imports relating to fentanyl will remain in place, meaning total tariffs on China stand at 30%.
"We had very productive talks and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process," U.S. Treasury Secretary Scott Bessent said in a news conference.
— Sam Meredith
Trump to sign order aiming at lowering prescription drug costs
US President Donald Trump speaks while signing legislation relating to household consumer energy policies, in the Oval Office of the White House in Washington, DC, on May 9, 2025.
Saul Loeb | AFP | Getty Images
President Donald Trump said he will sign an executive order Monday morning to introduce "most favored nation" pricing model to lower U.S. prescription drug costs.
"I am pleased to announce that Tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country's history. Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%," Trump said in a post on Truth Social Sunday.
The policy ties the amount the government pays for some medications to prices paid abroad. In other words, the U.S. would pay no more than the lowest prices paid by other wealthy countries.
"They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION'S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World," Trump said.
— Yun Li
Chinese officials cite 'substantial progress' in trade talks
Chinese Vice Premier He Lifeng listens to speeches, during a bilateral meeting between Switzerland and China, in Geneva, Switzerland, May 9, 2025.
Fdfa/ Keystone/ Martial Trezzini | Via Reuters
The Chinese officials who participated in the U.S. trade talks over the weekend spoke positively.
Vice Premier of the People's Republic of China He Lifeng said the meeting "achieved substantial progress and reached important consensus."
"The two sides agreed on establishing a consultation mechanism for trade and economic issues," Lifeng said.
China International Trade Representative Li Chenggang said no matter when a statement is released about a trade deal, it's going to be "big news" and "good news for the world."
— Yun Li
English (US)