U.S. stocks climbed sharply Monday morning after Washington and Beijing agreed to a temporary suspension of most tariffs, easing trade tensions between the world's top two economies.

The Nasdaq Composite rose about 3.5%. The S&P 500 gained nearly 2.5%, while the Dow Jones Industrial Average was up 2%.

Yields also pushed higher. The 10-year Treasury yield (US10Y) rose 8 basis points to 4.47%, and the 2-year (US2Y) added 10 basis points to 4.01%.

The agreement includes a 90-day pause in tariff hikes. The U.S. will cut its duties on Chinese goods to 30% from 145% by May 14. In response, China plans to lower its levies on American products to 10% from 125%.

The move follows last week's modest market pullback and comes ahead of key U.S. data releases, including consumer and wholesale inflation figures for April.

Deutsche Bank's Jim Reid noted that optimism around renewed diplomacy, including potential talks in Switzerland, contributed to the broader risk-on sentiment heading into the week.