US Stock Futures Jump as China Trade Deal, Pharma Price Cuts, and Ceasefire Boost Market Sentiment

U.S. stock futures surged Sunday evening following news that Washington and Beijing had reached a trade agreement during high-level meetings in Geneva. Although specific details were withheld, the White House confirmed the deal, sparking investor optimism.

Dow futures climbed 1% to 41,736.0, S&P 500 futures rose 1.2% to 5,745.0, and Nasdaq futures jumped 1.5% to 30,438.75 by 19:07 ET. Wall Street had already ended last week on a positive note amid speculation of a breakthrough in U.S.-China negotiations and robust Q1 earnings reports.

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer highlighted substantial progress, noting the speed of the agreement suggested narrower differences than expected. A joint statement from both governments is anticipated Monday. Chinese Vice Commerce Minister Li Chenggang called the upcoming release “big news and good news for the world.” President Trump had previously suggested that tariffs on Chinese goods could be reduced from 145% to 80%.

Analysts, including Wedbush’s Dan Ives, view the deal as a major bullish signal for markets.

Adding to investor enthusiasm, President Trump announced plans to sign an executive order slashing U.S. prescription drug prices by 30% to 80%. The order, to be signed Monday at 9:00 a.m., aims to address longstanding pharmaceutical cost disparities globally. Trump emphasized that foreign drug prices would rise to level the playing field for American consumers.

Meanwhile, pharmaceutical giant Eli Lilly (NYSE:LLY) reported that its Zepbound weight loss drug outperformed Novo Nordisk’s (NYSE:NVO) Wegovy in a head-to-head trial, potentially reshaping the obesity drug market.

Further calming global tensions, a U.S.-mediated ceasefire between India and Pakistan was announced, with both nations agreeing to halt hostilities immediately.