U.S. drops China tariffs to 30% after 'constructive' talks, rolling back much of Trump's trade war threats

(Credit: Valentin Flauraud—AFP via Getty Images))

Stock markets jumped Monday as the U.S. and China promised to de-escalate a budding trade war, scaling back tariffs that threatened significant pain to the world's two largest economies.

Hong Kong's benchmark Hang Seng Index closed 3% higher, with the news coming around an hour before market close. The index has now recovered its losses since U.S. President Donald Trump announced "reciprocal tariffs" on April 2. S&P 500 futures are up 2.75%, as of 4:45 a.m. Eastern time.