US stock futures climbed on Friday, on track for their longest winning streak in more than two months, as trade tensions eased and Federal Reserve officials signaled they may cut rates sooner than expected.

The Dow Jones Industrial Average (^DJI) jumped 1.2%, or nearly 500 points. The benchmark S&P 500 (^GSPC) gained 2%, while the tech-heavy Nasdaq Composite (^IXIC) rose around 2.7%.

On Thursday, Alphabet stock rose after the company beat on earnings and announced a dividend hike and a $70 billion stock buyback. The Google parent is the first Big Tech company to report earnings since Trump’s tariffs went into effect this month.

It was reported on Friday that China may pause its 125% tariff on some US goods, boosting market sentiment. Despite these developments, Trump had said talks with China were underway, but China denied the existence of negotiations and demanded the US lift tariffs.

Stocks rallied earlier in the day Thursday as investors focused on Trump’s optimistic tone on trade talks. Treasury Secretary Scott Bessent suggested a deal with South Korea could come sooner than expected, while Trump highlighted progress in negotiations with India.

Read more: The latest on Trump’s tariffs

On Friday, investors will get a pulse on consumer sentiment with the latest release of the University of Michigan consumer survey. Consumer sentiment has been sliding as inflation expectations tick up amid Trump’s trade war.