• U.S. and China agree to cut tariffs for 90 days, leading to a surge in stock futures.
• Dow Jones futures rose over 1,000 points, reflecting strong market optimism.
• Tech stocks like Nvidia and Tesla saw significant gains in premarket trading.

U.S. stock index futures surged dramatically on Monday following the announcement of a 90-day tariff suspension agreement between the United States and China. U.S. Treasury Secretary Scott Bessent confirmed the cuts would reduce tariffs significantly—from as high as 145% to approximately 30% on Chinese imports, while China's tariffs on American goods will be lowered to 10% from 125%. This agreement, described as a pivotal moment in the trade landscape, temporarily eases fears of a prolonged trade war that has affected global markets, according to Reuters and India Times.

Market reactions were immediate, with Dow E-minis up nearly 1,000 points, or 2.5%, alongside similar gains in the S&P 500 and Nasdaq futures, which climbed 3.2% and 4%, respectively. Trading volumes indicated robust confidence, particularly in technology stocks, which had previously faced pressure due to tariff-induced supply chain concerns. For instance, shares of Nvidia and Tesla increased by over 4% and 6.7%, respectively, reflecting strong premarket activity, according to CBS News and CBS News.

Furthermore, the developments had positive implications for the energy sector, with crude oil prices rising by over 3%, bolstering stocks of major producers like Chevron and Exxon Mobil. This broad market uplift follows a recent limited trade agreement between the U.S. and the UK, suggesting a more favorable environment for global trade, according to Reuters and India Times.

While this tariff pause is a significant development, analysts cautioned that ongoing trade negotiations could lead to future uncertainties. Some officials emphasize that despite the temporary reductions, tariffs remain high and the potential for resumed tensions still looms, highlighting a fragile balance in international trade relations, according to CBS News.