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.

Futures surged as the U.S. and China will slash tariffs more than hoped after trade talks. Tesla, Palantir, Alibaba are in focus.

Stock futures traded higher after officials from the U.S. and China wrapped up their weekend trade talks, touting progress toward a deal. Contracts tied to the S&P 500 and Dow industrials were up around 1% Sunday evening in New York,