Goldman Sachs raised its forecasts for Chinese and U.S. economic growth, and cut its odds for a U.S. recession, after the countries agreed Monday to slash tariffs on each other's imports.

Goldman Sachs cut its recession forecast for the U.S. to 35% from 45%, the first major brokerage to do so, after a temporary tariff truce with China boosted hopes of some easing in the global trade war.