U.S. stock futures jumped early Monday after the U.S. and China agreed to temporarily slash tariffs following negotiations over the weekend in Switzerland. Dow Jones Industrial Average futures gained 1,117 points, or 2.6%. S&P 500 futures climbed 3.1%, and Nasdaq-100 futures surged 4%. U.S. Treasury Secretary Scott Bessent said on Monday that talks with China had been “very productive” and both countries had agreed to cut “reciprocal” tariffs by 115% for 90 days. That brings U.S. tariffs on Chinese goods down to 30%, and Chinese tariffs on U.S. imports to 10%. Bessent told CNBC’s “Squawk Box” on Monday that he expects to meet once again with representatives from Beijing in the “next few weeks” to iron out a bigger agreement. Best Buy, which sells electronics and appliances vulnerable to tariffs, popped 8% in the premarket to lead S&P 500 gains. Dell Technologies and On Semiconductor also climbed more than 8%, while Amazon and Apple advanced more than 8% and 7%. 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. “We believe peak uncertainty over trade has passed, but market volatility is likely to stay,” UBS head of fixed income Kurt Reiman wrote in a Monday note. “Our base case remains that the effective US tariff rate (ex-China) will moderate toward 15% by year-end.” The S&P 500 nearly closed in bear market territory — down more than 20% from a record set in February — following the “liberation day” announcement. Stocks quickly rebounded after Trump cut tariffs on the rest of the world, but gains were held in check as investors awaited progress on U.S.-China trade negotiations. Should the morning’s futures gains hold through the close, the S&P 500 would be near positive territory for the year. 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 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. Treasury yields moved higher on Monday after the U.S. and China agreed to slash tariffs on each other’s goods, a move welcomed by investors. The 10-year Treasury yield was up by 6.6 basis points to 4.441%, while the 2-year Treasury yield jumped more than 10 basis points to 3.985%. Asia-Pacific markets rallied Monday after China and the U.S. announced a trade deal, including a 90-day pause on tariffs and a drop in reciprocal tariffs by 115 percentage points. “The magnitude of this tariff reduction is larger than expected,” Tai Hui, APAC Chief Market Strategist at J.P. Morgan Asset Management, noted. “This reflects both sides recognizing the economic reality that tariffs will hit global growth and negotiation is a better option going forward. The 90-day period may not be sufficient for the two sides to reach a detailed agreement, but it keeps the pressure on the negotiation process,” he wrote in a Monday note. Hui also added that investors would still be awaiting “further details on other terms of this agreement, for example, whether China would relax on rare earth export restrictions.” Hong Kong stocks led gains in the region with the Hang Seng Index surging 2.98% to end the day at 23,549.46, while the Hang Seng Tech index advanced 5.16% to 5,447.35, their highest levels since March 27. Meanwhile, mainland China’s CSI 300 index increased 1.16% to end the day at 3,890.60. Indian stocks also saw massive gains following the ceasefire between India and Pakistan over the weekend. The arch rivals were involved in intense firing — the worst in nearly three decades — with both sides exchanging fire with missiles and drones. The benchmark Nifty 50 surged 3.49% while the BSE Sensex gained 3.38% as of 2 p.m. local time. Japan’s benchmark Nikkei 225 ended the day 0.38% higher at 37,644.26 while the broader Topix index added 0.31% to 2,742.08. In South Korea, the Kospi index advanced 1.17% to close at 2,607.33 while the small-cap Kosdaq moved up 0.4% to 725.40. Over in Australia, the benchmark S&P/ASX 200 pared gains to end the day flat at 8,233.50. Crude oil futures jumped 4% on Monday, after the U.S .and China agreed to slash tariffs, easing trade tensions between the world’s two largest petroleum consumers. U.S. crude oil was up $2.52, or 4.1%, to $63.54 per barrel. Global benchmark Brent rose $2.33, or 3.65%, to $66.24 per barrel. Gold dropped 3% to a more than one-week low on Monday after the United States and China said they had agreed to a deal to cut reciprocal tariffs, sending the dollar higher and denting the safe-haven metal’s appeal. Spot gold was down 3.1% at $3,222.59 an ounce, its lowest since May 1. U.S. gold futures slipped 3.6% to $3,224.40. “The de-escalation of tensions between China and the U.S., with tariffs being reduced for 90 days, is reducing the demand for safe haven assets like gold,” said UBS analyst Giovanni Staunovo.