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U.S. stock futures are jumping after the U.S. and China agree on a trade deal that would temporarily lower tariffs between the two countries; Tesla (TSLA), Nvidia (NVDA), and other tech stocks are surging in premarket trading on the agreement; pharmaceutical stocks are falling after President Donald Trump wrote he plans to reduce prescription drug prices; and automaker stocks are gaining following the trade deal news. Here's what investors need to know today.

1. US Stock Futures Surge Following US-China Trade Deal

U.S. stock futures are soaring on the news of a trade deal between the U.S. and China at the beginning of a week that will see fresh inflation data, remarks from Federal Reserve officials, and a slate of corporate earnings that includes Walmart (WMT). Dow Jones Industrial Average futures are surging 2.5%, or more than 1,000 points. Nasdaq and S&P 500 futures are up about 4% and 3%, respectively. Bitcoin (BTCUSD) is little changed at around $104,000, while yields on the 10-year Treasury note are rising above 4.45%. Oil futures are jumping and gold futures are dropping.

2. US, China Agree to Slash Tariffs for 90 Days

The U.S. and China agreed to slash tariffs on each other's imports for 90 days following weekend talks between leaders of the two countries in Switzerland. Under the agreement, the U.S. levy on Chinese imports will be reduced to 30% from 145% by Wednesday, while Beijing's tariffs on U.S. goods will drop to 10% from 125%. The deal, announced in a joint statement, comes after tit-for-tat tariff hikes between the countries created volatile market movements.

3. Tesla, Other Tech Stocks Soar on Trade Deal

Tech stocks are soaring in premarket trading on the U.S.-China trade deal. Shares of Tesla (TSLA) are nearly 8% higher after the electric vehicle maker posted its third straight week of gains to trade at its highest levels in more than two months. Shares of chipmakers Advanced Micro Devices (AMD), Broadcom (AVGO), and Nvidia (NVDA) are up around 7%, 6%, and 5%, respectively. Shares of Apple (AAPL), which makes about 90% of its products in China, are up 6%, while those of Amazon (AMZN), which sells many Chinese-made goods, are advancing nearly 8%.

4. Pharmaceutical Stocks Fall on Trump Pledge to Reduce Drug Costs

Several pharmaceutical stocks are moving lower in premarket trading after President Donald Trump wrote in a Trust Social post Sunday that he would sign an executive order to reduce drug costs by 30% to 80%. Trump said in his post that the order would bring down drug costs to the lowest price paid in other countries under a "most favored nation" policy. Eli Lilly (LLY) stock is dropping by 3.5%, while U.S.-listed shares of rival Novo Nordisk (NVO) are falling 3%. Merck (MRK) and Pfizer (PFE) shares are down 3% and 2.5%, respectively.