U.S. stocks jumped in overnight trading as as US and China agreed to major reductions in tariffs for 90 days.

Big tech stocks jumped. Tesla rose 7%; Amazon rose 6%; Nvidia and Meta rose 5%; Apple rose 4%, Alphabet and Microsoft rose 3%.

Chinese ADRs and ETFs jumped. YINN rose 11%; XPeng rose 9%; Alibaba, PDD Holdings, and Li Auto rose 7%; JD.com and NIO rose 6%.

The US and China will temporarily lower tariffs on each other’s products, according to a joint statement released in Geneva, in a move to cool trade tensions and give the world’s two largest economies three more months to resolve their differences.

The combined 145% US levies on most Chinese imports will be reduced to 30% including the rate tied to fentanyl by May 14, while the 125% Chinese duties on US goods will drop to 10%, according to the statement and officials in a briefing Monday.

“We had a very robust and productive discussion on steps forward on fentanyl,” Treasury Secretary Scott Bessent said. “We are in agreement that neither side wants to decouple.”

The statement also said “the parties will establish a mechanism to continue discussions about economic and trade relations.”

Sharp market reaction to the news just now, with S&P 500 futures gaining as much as 2.8% and Nasdaq 100 futures rising as much as 3.3%.

The announcement represents a step toward de-escalating a tariff war that has led to an immediate slump in trade across the Pacific Ocean. The two countries had earlier reported “substantial progress” in their talks, which buoyed markets and helped Chinese stocks recoup their losses since President Donald Trump’s “Liberation Day” announcement of tariffs on April 2.