Global markets climbed on Monday as investors responded positively to signs of progress from weekend trade talks between the United States and China held in Switzerland.
U.S. Treasury Secretary Scott Bessent praised the meetings as “productive,” citing “substantial progress,” with more details expected Monday. Chinese Vice Premier He Lifeng echoed the sentiment, describing the discussions as “candid, in-depth, and constructive.”
Futures on major U.S. indexes surged in overnight trading:
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S&P 500 futures rose 1.4% to 5,756.25
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Dow Jones futures climbed 1% or 415 points to 41,738.00
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Nasdaq 100 futures jumped 2% to 20,529.25
The S&P 500 has nearly rebounded to levels seen before the sharp drop on “Liberation Day” in early April, when a new round of tariffs triggered a two-day, 10% selloff. The index is now about 6% below its February peak of 6,144.
“The market seems to be pricing in a cooling of geopolitical tensions,” wrote analyst Ed Yardeni in a Sunday note.
Risk-on sentiment weighed on traditional safe-haven assets:
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Gold slipped 1.3% to $3,282.04 per ounce
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USD/JPY gained 0.3% to 145.81
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USD/CHF rose 0.3% to 0.8333
Asian equities also moved higher, although gains were modest due to lingering caution:
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Nikkei 225: +0.1% to 37,519.80
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Kospi: +0.5% to 2,589.48
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ASX 200: +0.2% to 8,245.5
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Hang Seng Index: +0.6% to 23,006.1
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CSI 300: +0.6% to 3,869.8
Despite the upbeat tone, analysts at Nomura warned that investor optimism could fade if the trade talks fail to yield concrete tariff relief.
President Donald Trump’s administration currently enforces a 145% combined tariff rate on Chinese imports, while China levies 125% on U.S. goods. Both sides have signaled temporary reductions—down to 30% and 10% respectively—for a 90-day period, raising hopes for a more lasting de-escalation.
