US STOCKS-US stock futures jump as US-China trade stand-off thaws

May 12 (Reuters) - U.S. stock index futures jumped on Monday after the United States and China said they had reached a deal to reduce tariffs, easing concerns of an all-out trade war that had gripped global markets.

Speaking after talks with Chinese officials in Geneva, U.S. Treasury Secretary Scott Bessent said the two sides had agreed on a 90-day pause on measures and that tariffs would come down by over 100 percentage points to 10%.

This "marks a pivotal moment in global trade dynamics," FP Markets' chief analyst, Aaron Hill, said.

"However, the 90-day timeframe indicates these tariff cuts are a negotiation tactic rather than a permanent resolution, creating uncertainty about long-term trade policies."

At 04:08 a.m. ET, Dow E-minis YMcv1 were up 822 points, or 1.99%, S&P 500 E-minis EScv1 were up 141.75 points, or 2.5% and Nasdaq 100 E-minis NQcv1 were up 666.25 points, or 3.31%.

Futures tied to the Russell 2000 small cap index RTYcv1 jumped 3.5%.

The CBOE Volatility index .VIX, known as Wall Street's fear gauge, briefly slipped below 20 points for the first time since late March. It was last at 20.37 points.

Most megacap and growth stocks firmed in premarket trading, with Nvidia NVDA.O jumping 4.6% and Tesla TSLA.O adding 6.7%.

Chip stocks like Advanced Micro Devices AMD.O and Marvell Technology MRVL.O climbed 4.9% and 7.5%, respectively.

Crude oil prices also surged over 3% after the U.S.-China announcement, lifting shares of top producers Chevron CVX.N and Exxon Mobil XOM.N about 2% higher each.

The deal between the United States and China comes days after a U.S.-UK limited trade agreement, easing fears that U.S. President Donald Trump's reciprocal tariffs announced on April 2 would roil global trade and spark a worldwide recession.

As of last close, the S&P 500 .SPX had erased almost all of its losses since April 2, helped along by some bright earnings reports and the trade optimism.

Pharmaceutical stocks, however, remained a casualty of tariff worries after Trump said on Sunday he plans to cut prescription prices to the level paid by other high-income countries, an amount he put at 30% to 80% lower.

Pfizer PFE.N, Eli Lilly LLY.N and Johnson & Johnson JNJ.N all fell more than 2% each.

Retail giant Walmart WMT.N, network equipment maker Cisco CSCO.O and farm equipment maker Deere DE.N are some of the prominent companies set to report results this week.

Retail inflation (CPI) data is due on Tuesday, while producer prices and retail sales will follow two days later.

Several Federal Reserve officials, including Chair Jerome Powell, are slated to make public remarks over the week.