GENEVA — The United States and China have agreed to temporarily slash reciprocal tariffs in a deal that surpassed expectations as the world’s two biggest economies seek to end a damaging trade war that has stoked fears of recession and roiled financial markets.

In a sign of investor relief that the worst of a U.S.-China trade war might be averted, U.S. stock futures rose on Sunday evening. The S&P 500 E-minis rose 1.3%, while Nasdaq futures added 1.6%.

Stock futures are pointing to a slightly higher open for major indexes on Wednesday as the market looks to add to big recent gains.

Global stock markets were up—along with the dollar—with sentiment further buoyed by the prospect that the Trump administration will announce a trade-deal framework with the U.K.