Dow, S&P 500, Nasdaq futures surge, market cheers the United States – China trade negotiations

Wall Street stock futures surged Sunday night in “substantial progress” in trade talks with China, which puts hopes for potential forces to expand in tensions between the world’s two largest economies.

Dow Jones Industrial Average (YM = F) futures rose more than 400 or 1%, while S&P 500 (ES = F) futures rose 1.2%. Nasdaq 100 (NQ = F) futures lead at 1.6%.

The market-friendly momentum followed by a high-level trade talks in Switzerland over the weekend, which Finance Minister Scott Bessent called “productivity.” Although details remained small, Bessent promised to be clearer in Monday's briefing.

The futures rally follows the stock market’s decline week. All three major indexes fell last week, with the Dow winning streak winning streak amid Wall Street’s latest turbulent move.

Inflation concerns are attracting the market, the impact of the 145% tariff on Chinese imports, a move that has been retaliated by Beijing's 125% retaliation, about to reach the pockets of American consumers. Pre-expected annual inflation expectations are at their highest levels in more than 40 years.

Commerce Secretary Howard Lutnick added Sunday that the U.S. benchmark tariff rate on all U.S. imports remained pledged, and even if negotiations with more countries were ongoing, it showed a positive government position.

With the release of key inflation data this week, traders will have a preliminary awareness of the initial inflationary effect of tariffs. April's Consumer Price Index (CPI) report will expire on Tuesday, followed by retail sales and manufacturer price index (PPI).

Revenues worth noting this week include Fox Corporation (FOXA), Monday: Chegg (Chgg) report released on Monday, Sony (Sony), Alibaba (Baba) and Walmart (WMT) should have later this week.