Global markets saw a wave of optimism today after the United States and China agreed to extend their tariff truce for another 90 days, delaying planned increases on billions of dollars worth of goods.

The move offers both sides more breathing room to continue trade negotiations, which have been ongoing for months. Analysts say this temporary pause could help stabilize market sentiment and give businesses more clarity on supply chain planning.

Wall Street reacted quickly, with futures rising in early trading. Asian markets also followed suit — Hong Kong’s Hang Seng and Japan’s Nikkei both closed higher, while Australian shares reached their highest level in weeks. European stocks opened on a positive note as well, reflecting the global relief over reduced trade tensions.

Investors have been watching U.S.–China relations closely, as the trade war between the two largest economies has affected industries from technology to agriculture. The 90-day extension doesn’t solve the underlying disputes, but it does signal a willingness from both countries to keep talking rather than escalate.

Still, market experts caution that the optimism could be short-lived if negotiations stall. The deadline could also bring renewed pressure if no concrete agreement is reached by the end of the extension.

For now, though, global investors seem ready to enjoy the calm. With trade tensions temporarily eased, attention will turn to other market drivers — including inflation data, central bank policies, and corporate earnings.