U.S. stock futures jumped significantly after Washington and Beijing reached an agreement to significantly reduce mutual tariffs. This news boosted risk assets while traders prepare for the upcoming April Consumer Price Index (CPI) report and digest President Trump’s recent executive order concerning drug pricing.

1. Stock Futures Rally Following Tariff Agreement

As of 04:37 ET (08:37 GMT), the figures were as follows:

• Dow Futures: +785 points (+1.9%)

• S&P 500 Futures: +142 points (+2.5%)

• Nasdaq 100 Futures: +689 points (+3.4%)

The Saturday announcement of a 90-day tariff truce sparked interest in equities, particularly in cyclical and tech sectors.

2. Key Features of the 90-Day Tariff Truce

• U.S. Tariffs on China: Reduced from 145% to 30%

• China’s Duties on U.S.: Reduced from 125% to 10%

• Moratorium on New Tariffs: No new tariffs during ongoing negotiations.

Treasury Secretary Scott Bessent reassured that “both sides wish to avoid a decoupling,” providing hope that global growth fears may subside.

3. Focus on Upcoming CPI Data

Attention now shifts toward April’s Consumer Price Index, set for release on Wednesday. Economists expect a year-over-year increase of 2.4%, akin to March’s results.

4. Pharmaceutical Stocks Tumble Post-Order Announcement

President Trump’s “most-favored-nation” directive aims to cut U.S. drug prices by 30% to 80%, aligning them with the lowest global price points. Most U.S. innovators stabilized, but European and Asian competitors faced unpredictability:

• Novo Nordisk (NVO): -1% at the open

• Eli Lilly (LLY): Remained flat after initial drop

• Bristol-Myers (BMY), Pfizer (PFE), Merck (MRK): Gained 2% to 4% following the open.

What to Monitor Moving Forward

1. Implementation of Tariffs: Watch for details on sector-specific provisions in future U.S.-China talks.

2. Inflation Reading Risks: An unexpected CPI result could temper stock market increases and elevate bond yields.

3. Pharma Sector Legal Challenges: Potential lawsuits may delay the effects of the order, creating trading opportunities amidst volatility.

By integrating real-time trade policy updates with precise economic data alerts, investors can navigate pivotal factors this week.