T he U.S. and Japan have reached a trade agreement under which the longtime U.S. will face a 15% tariff—down from a previously threatened 25%—President Donald Trump announced on Tuesday, as Japan’s Prime Minister hailed the move as a “new golden era” in the relationship between the two countries.

U.S. stock index futures jumped on Wednesday after President Donald Trump struck a trade deal with Japan, bolstering expectations of more such agreements as the August 1 deadline approaches. The agreement includes lowering tariffs on Japan's auto sector to 15% from the previous 27.

Stocks look set to rise on Wednesday after the U.S. brokered a trade deal with Japan, giving investors another reason to feel cheerful about tariffs ahead of the Aug. 1 deadline. Futures tracking the