Markets Surge as U.S.-China Tariff Truce Signals Economic Rebound

On Monday, Wall Street's main indices were set to open significantly higher after the United States and China struck a deal to reduce tariffs, marking a pause in the extensive trade war that has unsettled markets recently.

The U.S. agreed to lower additional tariffs on Chinese imports from 145% to 30%, while Chinese tariffs on U.S. goods fell from 125% to 10%. This new tariff structure is effective for 90 days, with expectations that it will recalibrate the market towards pre-tariff levels, indicating a robust economic outlook, according to Thomas Hayes of Great Hill Capital LLC.

Major stocks saw premarket gains, with notable increases in Nvidia, Tesla, and Apple, the latter possibly hiking its fall iPhone lineup prices. Meanwhile, chip companies Advanced Micro Devices and Marvell Technology benefited from the positive sentiment, as did energy giants Chevron and Exxon Mobil, propelled by a near 4% rise in crude oil prices.

(With inputs from agencies.)