Traders work on the floor at the New York Stock Exchange in New York City, U.S., May 7, 2025.
Brendan McDermid | Reuters
U.S. stock futures jumped Sunday night after the Trump administration announced a “trade deal” with China following negotiations over the weekend in Switzerland.
Dow Jones Industrial Average futures rallied 408 points, or 1%. S&P 500 and Nasdaq-100 futures climbed 1.1% and 1.3%, respectively.
Without providing specifics, Treasury Secretary Scott Bessent said two days of trade talks with Chinese officials in Geneva were “productive” and yielded “a great deal” of productivity. Bessent said details would be provided in a briefing Monday morning.
“This is a huge positive in the right direction for the markets,” Dan Ives, Wedbush Securities global head of technology research, said in a note to clients. “We would characterize this weekend so far as a best case scenario that shows the framework for a bigger US/China deal is now on the table.”
Tensions between China and the U.S. soared after President Donald Trump last month unveiled 145% tariffs on imported goods from China. Beijing then retaliated with 125% duties of its own targeting U.S. goods.
Commerce Secretary Howard Lutnick said Sunday that the 10% baseline tariff rate on imports from other countries is likely to “be in place for the foreseeable future,” echoing Trump’s comments from days prior.
All three major averages are coming off their first losing week in three. The S&P 500 and Nasdaq Composite shed 0.5% and 0.3%, respectively. The Dow slipped 0.2% last week.
Investors this week will look for signs on how the rising trade tensions are impacting the economy. The consumer price index reading for April is due Tuesday morning, while retail sales and the producer price index — another inflation measure — are set for release on Thursday.
Trump to sign order aiming at lowering prescription drug costs
President Donald Trump said he will sign an executive order Monday morning to introduce “most favored nation” pricing model to lower U.S. prescription drug costs.
“I am pleased to announce that Tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history. Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%,” Trump said in a post on Truth Social Sunday.
The policy ties the amount the government pays for some medications to prices paid abroad. In other words, the U.S. would pay no more than the lowest prices paid by other wealthy countries.
“They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA! I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” Trump said.
— Yun Li
Chinese officials cite ‘substantial progress’ in trade talks
The Chinese officials who participated in the U.S. trade talks over the weekend spoke positively.
Vice Premier of the People’s Republic of China He Lifeng said the meeting “achieved substantial progress and reached important consensus.”
“The two sides agreed on establishing a consultation mechanism for trade and economic issues,” Lifeng said.
China International Trade Representative Li Chenggang said no matter when a statement is released about a trade deal, it’s going to be “big news” and “good news for the world.”
— Yun Li
