Wall Street set to jump at open on temporary trade detente

US stock index futures jumped around 2 per cent on Monday, setting Wall Street up to add to last week's strong gains, after the United States and China declared a temporary trade truce, reports Reuters.

Strong gains in Apple Inc and other technology stocks pushed Nasdaq futures NQc1 up more than 2 per cent, while S&P 500 e-minis ESc1 touched a near 1-month high. Gains in Dow futures set the blue-chip index up for a near 450-point gain at the open.

Washington and Beijing agreed to a 90-day trade ceasefire during the G20 summit in Argentina on Saturday and US President Donald Trump said China has agreed to "reduce and remove" tariffs below the 40 per cent level that the country is currently charging on US-made vehicles.

However, the White House also said that the existing 10 per cent tariffs on $200 billion worth of Chinese goods would be lifted to 25 per cent if no deal was reached within 90 days.

The trade optimism spilt over to shares of Apple, which gained 3.3 per cent in premarket trading.

Trump had said last week that the next round of tariffs could also be placed on the company's iPhones, as part of the $267 billion list of goods not yet hit by tariffs.

Trade-sensitive Caterpillar Inc, Boeing Co gained over 4.5 per cent each, while US carmakers General Motors Co, Ford Motor Co and Tesla Inc rose between 3 per cent and 4 per cent.