Stock futures on Wall Street surged Sunday evening as the US cited “substantial progress” in trade negotiations with China, raising hopes of a potential deescalation in tensions between the world’s two largest economies.
Dow Jones Industrial Average (YM=F) futures rose by over 400 points, or 1%, while S&P 500 (ES=F) futures advanced 1.2%. Nasdaq 100 (NQ=F) futures led gains with a 1.6% jump.
The market-friendly momentum followed a weekend of high-level trade talks in Switzerland, which Treasury Secretary Scott Bessent called “productive.” While details remain scarce, Bessent promised further clarity during a briefing on Monday.
The rally in futures comes after a downbeat week for stocks. All three major indexes fell last week, with the Dow snapping a two-week winning streak in the latest volatile action on Wall Street.
Inflation fears are gripping markets, with the impact of sweeping 145% tariffs on Chinese imports, a move met with retaliatory 125% duties from Beijing, coming to American consumers’ pockets. Year-ahead inflation expectations sit at their highest level in more than 40 years.
Commerce Secretary Howard Lutnick added Sunday that the U.S. remains committed to a 10% baseline tariff rate on all imports to the US, signaling the administration’s aggressive stance even as talks with more nations are underway.
Traders will get their first sense of the initial inflationary effects of the tariffs with the release of key inflation data this week. April’s Consumer Price Index (CPI) report is due Tuesday, followed by retail sales and the Producer Price Index (PPI) on Thursday.
Notable earnings this week include Fox Corporation (FOXA), Monday.com (MNDY), Chegg (CHGG) all releasing reports Monday, with Sony (SONY), Alibaba (BABA), and Wallmart (WMT) all due later in the week.
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Stock market coverage for Monday, May 12, 2025
