U.S. stock index futures rose on Wednesday after President Donald Trump clinched a trade deal with Japan, fueling hopes for a wave of new agreements ahead of the fast-approaching August 1 deadline. The pact will slash tariffs on Japanese autos from 27.

The U.S. and Japan have reached a trade agreement that will lower tariff rates on the longtime U.S. ally down to 15%, President Donald Trump said Tuesday. The 25% tariff rate slated to hit Japan by August will be lowered to 15%, according to Trump, who said Japan will invest $550 billion into the U.S. under the deal.