07:39 AM EDT, 05/12/2025 (MT Newswires) -- The benchmark US stock measures were pointing higher before the opening bell on Monday as Washington and Beijing struck a deal to slash tariffs on each other's goods, while investors await key inflation data later in the week.

The S&P 500 gained 2.8%, the Dow Jones Industrial Average rose 2.2%, and the Nasdaq climbed 3.8% in premarket activity. The S&P 500 and the Dow finished Friday's trading session in the red, while the Nasdaq Composite was little changed.

The US and China on Monday agreed to temporarily suspend most tariffs on each other's goods, effective Wednesday, following talks between officials in Switzerland over the weekend. China will reduce its tariffs on US goods to 10% from 125%, while the US will lower duties on Chinese products to 30% from 145%. The new measures are effective for 90 days.

"We had very productive talks," US Treasury Secretary Scott Bessent said in a news conference, according to a CNBC report. "We have reached an agreement on a 90-day pause and substantially move down the tariff levels."

Washington and Beijing have been engaged in a trade war after President Donald Trump announced sweeping new reciprocal tariffs on several nations on April 2. Last month, China raised its tariffs on US imports to 125% in response to Trump's move to hike duties on the Asian country's products to 145%.

"This is clearly just the start of a broader and more comprehensive negotiations, and we would expect both these tariff numbers to move down markedly over the coming months as deal talks progress," Wedbush Securities said in a Monday client note.

US Treasury yields moved higher in premarket action, with the two-year rate increasing about 12 basis points to 4% and the 10-year rate gaining 7 basis points to 4.45%.

With no economic reports scheduled for Monday, traders will be awaiting the consumer price index report for April on Tuesday, followed by the producer price index and the retail sales report for the same month on Thursday.

Last week, the Federal Reserve kept its benchmark lending rate unchanged and warned that upside risks to inflation and unemployment have increased. Fed Governor Michael Barr said Friday that the US government's trade tariffs were likely to raise inflation and unemployment, amid an expected economic slowdown.

Fed Governor Adriana Kugler is scheduled to speak at 10:25 am ET.

Shares of Tesla (TSLA) jumped 7.5% pre-bell while Nvidia ( NVDA ) grew 4.8%. Amazon.com ( AMZN ) spiked 7.6%, Apple ( AAPL ) rose 6.7%, and Meta Platforms ( META ) advanced 7.1%.

"With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025," according to Wedbush.

Fox (FOX, FOXA), Monday.com ( MNDY ) , Essential Utilities ( WTRG ) and Sportradar Group ( SRAD ) are among the companies reporting their latest financial results before the bell.

West Texas Intermediate crude oil increased 2.9% to $62.78 a barrel before the open. Gold dropped 3.8% to $3,216 per troy ounce, while bitcoin slipped 0.2% to $104,298.