China hailed a trade agreement with the U.S. that will see both sides sharply reduce their tariffs for 90 days, calling it an "important step" that could lead to "deepening cooperation" between the world's two largest economies.

A deal with China is a relief to investors who worried 145% tariffs would severely limit trade, raise prices and hurt the US economy.

Progress on US-China trade over the weekend sent stocks soaring on Monday. Some top commentators say tariffs are still a big risk.

"That is leading us to put some cash to work," the lead portfolio manager for TheStreet Pro Portfolio said. After two days of negotiations in Switzerland, the U.S. and China agreed to temporarily slash their steep tariffs on each other.

U.S. stocks soared Monday as investors celebrated major progress on a U.S.-China trade deal. The Dow added over 1,100 points, exiting correction territory, while the Nasdaq Composite began a fresh bull market.

“It is good that that de-escalation in happening amidst countries. Trade flourishes when value chains are free,” said an official source, adding that India has to improve its competitiveness. He also noted that tariffs are still quite high on China.

Online shoppers in the U.S. will see a price break on their purchases valued at less than $800 and shipped from China after the Trump administration reached a truce with Beijing over sky-high tariffs.

China has criticised a trade deal between the United Kingdom and the United States that could be used to squeeze Chinese products out of British supply chains, the Financial Times reported on Tuesday.

The White House backed off from the steepest levies, as the costs of an all-out trade war with China threatened global economic growth.

Former Fed president Bill Dudley warned that the central bank risks mistiming interest rate cuts if the economy stumbles into a recession.