Sun May 11 22:50:00 UTC 2025: **US and China Reach Trade Deal, Sending Stock Futures Soaring**
GENEVA/WASHINGTON D.C. – A surprise trade deal between the United States and China sent US stock futures surging Sunday night. Following two days of productive talks in Geneva, Treasury Secretary Scott Bessent announced a significant agreement, promising further details in a Monday morning briefing. Dow Jones Industrial Average futures jumped 1%, rallying 408 points, with similarly strong gains seen in S&P 500 and Nasdaq futures.
The announcement follows escalating trade tensions sparked by recent tariff increases imposed by both countries. While Commerce Secretary Howard Lutnick confirmed that the 10% baseline tariff on imports from other countries will remain in place, market analysts hailed the deal as a positive step towards de-escalation. Wedbush Securities’ Dan Ives described the outcome as a “best-case scenario,” suggesting a framework for a broader US-China trade agreement.
Chinese officials also expressed optimism. Vice Premier He Lifeng stated the talks achieved “substantial progress and reached important consensus,” including the establishment of a consultation mechanism for future trade issues. Chinese International Trade Representative Li Chenggang predicted the deal would be “big news and good news for the world.”
Separately, President Trump announced he will sign an executive order Monday morning to implement a “most favored nation” pricing model for prescription drugs, aiming to reduce costs by 30% to 80%. This policy would tie US drug prices to the lowest prices paid in other wealthy nations.
Investors will be closely watching economic indicators this week, including the April consumer price index and retail sales data, for insights into the impact of recent trade developments.
First Piper 