Stock futures on Wall Street surged Sunday evening as the US cited "substantial progress" in trade negotiations with China, raising hopes of a potential deescalation in tensions between the world’s two largest economies.

U.S. stock index futures jumped on Monday after the United States and China said they had reached a deal to reduce tariffs, easing concerns of an all-out trade war that had gripped global markets.

Stock futures extended gains, after the U.S. and China said they have agreed to suspend most tariffs on each other's goods while further trade negotiations continue. Contracts tied to the S&P 500 and Dow industrials recently stood more than 2% higher.