Global stocks climbed on Monday after reports that U.S. and Chinese negotiators had made progress toward a preliminary framework on tariff reductions. The optimism lifted risk appetite across major markets, with investors betting that easing trade tensions could support growth and corporate earnings.

The gains followed signs that both sides were discussing a path to lower duties, a move that could reduce pressure on supply chains and improve sentiment in sectors exposed to cross-border trade. Analysts cautioned, however, that any framework remains early-stage and could still face political and technical obstacles before becoming policy.

Markets have been highly sensitive to developments in the world’s biggest bilateral economic relationship, given the potential impact on manufacturing costs, consumer prices, and global demand. Monday’s rally reflected relief that talks were moving forward, even as traders waited for more concrete details.

For now, investors appear to be pricing in a better chance of de-escalation. But with previous rounds of negotiations often producing limited or short-lived breakthroughs, market participants are likely to stay focused on whether the latest progress translates into lasting tariff cuts.