Stock futures surge as White House touts China trade deal

Investing.com -- U.S. stock futures opened sharply higher Sunday evening after the White House announced a trade deal with China had been reached following high-level meetings in Geneva this weekend. Details of the trade deal have not been released.

Shortly after U.S. futures opened at 6:00 PM ET, Dow futures were up 450 points, or 1.1%, S&P 500 futures were up 1.2%, and Nasdaq futures were up 1.4%.

U.S./China trade deal said reached in Switzerland

Representatives from the Trump administration said that a trade deal with China was reached on Sunday, although no details were given.

“We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving [the trade deficit],” U.S. Trade Representative Ambassador Jamieson Greer stated Sunday afternoon.

“It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought,” Greer added.

“I’m happy to report that we made substantial progress between the United States and China in the very important trade talks,” Secretary of the Treasury Scott Bessent said.

Bessent added that he spoke with President Trump, and there will be a complete briefing Monday morning.

The U.S. currently has a 145% tariff on Chinese imports, and recent reports suggested that this could be reduced to around 50%, although President Trump said on Friday a number in the 80% range “seems right.”

Analysts are already calling the development a positive step in the right direction.

“While the details and framework for the US/China trade deal will be key and discussed tomorrow morning, this is a huge positive in the right direction for the markets and more progress has come out of these Swiss talks than even the bulls were hoping for heading into Friday night,” Wedbush tech analyst Dan Ives said Sunday following the news.

India and Pakistan ceasefire

In another potential market-moving development, India and Pakistan agreed to a ceasefire after increased tensions in recent days. U.S. President Donald Trump said U.S.-led mediation allowed cooler heads to prevail.

“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE,” Trump said on Saturday. Pakistan praised the U.S.’s role in the ceasefire, although India downplayed it.

Earnings season winding down

U.S. earnings season continues next week, although it is winding down.  Next (LON:NXT) week, the markets will hear from large names like Home Depot (NYSE:HD), Palo Alto Networks (NASDAQ:PANW), Lowe’s (NYSE:LOW), Target, and Snowflake (NYSE:SNOW), among others.