Wall Street Futures Soar as U.S.-China Slash Tariffs, Easing Trade War Jitters

Global markets rally on tariff rollback, risk appetite rebounds sharply

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🏛️ U.S.-China Tariff Truce Sparks Market Euphoria

Wall Street stock futures surged on Monday after U.S. and Chinese officials pledged to slash reciprocal tariffs, sweeping trade war fears off the table—at least for now.

After weekend talks in Geneva, both nations announced they will drop levies imposed since President Trump’s April 2 tariff blitz.
Markets reacted swiftly:

• S&P 500 futures jumped 2.6%
• Nasdaq 100 futures surged 3.8%, positioning for the tech index’s best day in over a month
• Hong Kong tech stocks skyrocketed 6%

Treasury Secretary Scott Bessent confirmed a 90-day pause on further measures, with tariffs reduced by over 100 percentage points to 10%.

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💵 Dollar Rallies, Gold Slumps as Safe-Haven Demand Fades

Risk appetite surged, sending safe-haven assets tumbling:

• The U.S. dollar index rose 0.9%, rebounding from a three-year low
• The yen dropped 1.5% to 147.08, while the euro slid 1.1% to $1.1131
• Spot gold plunged 3% as investors rotated into riskier assets

Crude oil also rallied:

• Brent crude gained 3.3% to $64.14
• WTI crude climbed 3.5% to $63.14

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📈 Global Equities Rally Broadly

The tariff truce boosted equities worldwide:

• Germany’s DAX hit a record high, up 1.5%
• Europe’s STOXX 600 rose 1.1%
• Italy’s FTSE MIB surged 2% to a 17-year high

In Asia:

• Hang Seng Index jumped 3%
• China’s yuan strengthened to 7.2001 against the dollar (six-month high)

“The magnitude of this tariff reduction is larger than expected,” said Tai Hui, APAC chief strategist at JPMorgan.
“While 90 days may not seal a full deal, it keeps both sides engaged and markets hopeful.”

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🌏 Geopolitical Calm Adds to Positive Mood

An easing of geopolitical tensions globally also buoyed markets:

• A fragile ceasefire held between India and Pakistan
• Ukrainian President Zelenskiy announced readiness to meet Vladimir Putin in Turkey for peace talks Thursday

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🔚 Conclusion: Markets Embrace Relief, But Fragile Optimism Rules

The U.S.-China tariff rollback has triggered a global risk rally, lifting stocks, oil, and the dollar while safe havens like gold tumble.
While the 90-day tariff pause is a temporary reprieve, markets are betting on continued negotiations rather than renewed escalation.

Bottom line:
Investors are breathing easier—for now—but with Trump’s trade unpredictability, economic data (like Walmart earnings Thursday), and geopolitical risks still in play, caution lingers beneath the optimism.