U.S. stock futures rose sharply on Sunday evening after the White House announced a trade deal with China had been reached following high-level meetings in Geneva this weekend, although no details of the agreement were released.

Dow futures were up 1% at 41,736.0 points, S&P 500 futures were up 1.2% at 5,745.0 points, and Nasdaq futures were up 1.5% at 30,438.75 points by 19:07 ET (23:07 GMT).

Gains in futures come after a positive week on Wall Street, as the prospect of a Sino-U.S. trade deal lifted spirits and spurred buying into risk-driven assets. 

A mostly positive first-quarter earnings season had also lifted Wall Street in recent weeks, with prints from Home Depot (NYSE:HD), Palo Alto Networks (NASDAQ:PANW), Lowe’s (NYSE:LOW), Target, and Snowflake (NYSE:SNOW) due in the coming days.

US-China trade deal reached in Switzerland

U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer said on Sunday afternoon that a trade deal had been struck with China, although they did not offer any more details.

“We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving [the trade deficit],” Greer said in a statement posted to the White House’s website.

“It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought,” Greer added.

Bessent also flagged "substantial progress between the U.S. and China in the very important trade talks," adding that he spoke to President Donald Trump and that there will be a complete briefing on Monday morning.

Chinese state media said that Beijing and Washington will issue a joint statement over the trade talks on Monday. Li Chenggang, China’s vice minister of Commerce, was quoted saying that "no matter when this statement is released, it’s going to be big news and good news for the world."

The U.S. currently has a 145% tariff on Chinese imports, and recent reports suggested that this could be reduced to around 50%, although President Trump said on Friday a number in the 80% range “seems right.”

Analysts are already calling the development a positive step in the right direction.

“While the details and framework for the US/China trade deal will be key and discussed tomorrow morning, this is a huge positive in the right direction for the markets and more progress has come out of these Swiss talks than even the bulls were hoping for heading into Friday night,” Wedbush tech analyst Dan Ives said Sunday following the news.

Trump to slash pharma prices

Trump said on Sunday that he plans to sign an executive order lowering prescription drug and pharmaceutical prices by between 30% and 80%.

Trump said he will "be signing one of the most consequential executive orders in our Country’s history," in the White House at 9:00 am on Monday morning.

Trump claimed that pharma prices will "rise throughout the world" in order to bring fairness to America.

In other pharma news, Eli Lilly and Company (NYSE:LLY) said that its Zepbound weight loss drug had outperformed rival Novo Nordisk’s (NYSE:NVO) Wegovy in a recent head-to-head trial.

India and Pakistan ceasefire

In another potential market-moving development, India and Pakistan agreed to a ceasefire after increased tensions in recent days. U.S. President Donald Trump said U.S.-led mediation allowed cooler heads to prevail.

“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a FULL AND IMMEDIATE CEASEFIRE,” Trump said on Saturday. Pakistan praised the U.S.’s role in the ceasefire, although India downplayed it.

The ceasefire appeared to be holding over the past 24 hours, although both India and Pakistan had accused each other of violations. 

Ambar Warrick contributed to this report.