Stocks were headed for big gains on Monday after the U.S. and China said that they had reached a deal to slash tariffs on each other’s goods.
Futures tracking the Dow Jones Industrial Average soared 893 points, or 2.2%. S&P 500 futures jumped 2.8%, and contracts tied to the tech-heavy Nasdaq 100 surged 3.7%.
The three blue-chip indexes went nowhere on Friday, with investors on edge ahead of the high-stakes trade talks between Washington and Beijing. But after months of uncertainty, the hope is that the tariff cuts announced early Monday are the start of deescalating tensions between the world’s two largest economies.
