Stock futures climb after report U.S. and China agree to cancel tariffs in stages – MarketWatch

U.S. stock futures jumped Thursday after a report that Beijing and Washington will cancel planned tariffs in stages, a development that could help reignite a recent upward move for equities.

How are major benchmarks performing?

Dow Jones Industrial Average futures

YMZ19, +0.52%

rose 150 points, or 0.6%, to 27,580, while S&P 500 futures

ESZ19, +0.39%

 rose 13.65 points, or 0.4%, to 3,089.25. Nasdaq-100

NQZ19, +0.47%

 futures added 42.75 points, or 0.5%, to 8,250.

On Tuesday, the Dow

DJIA, +1.11%

 lost less than a point to end at 27,492.50, while the S&P 500 index

SPX, +0.96%

 gained 2.16 points, or 0.07%, at 3,076.78. The Nasdaq Composite Index

COMP, +1.13%

 shed 24.05 points, 0.29%, closing at 8,410.63.

What’s driving the market?

Major indexes have been dipping in and out of record territory in recent sessions, with investors clinging to developments over a long-awaited interim trade deal between the U.S. and China. Reports that such a deal could be delayed until December, as talks continue over terms and a venue, dented enthusiasm for stocks on Tuesday.

Strategists have been concerned that the market may be placing too much emphasis on a preliminary, or “Phase One,” trade deal coming to fruition soon.

But the mood shifted again early Thursday after Bloomberg reported China and the U.S. will cancel planned tariffs on each other’s products in stages, with the first agreement due to be signed in the next few weeks. The amount of tariff relief that’s coming will depend on what’s in that deal, said Ministry of Commerce spokesman Gao Feng, according to the report.

How are others assets trading?

The yield of the 10-year U.S. Treasury note

TMUBMUSD10Y, +3.68%

jumped 6 basis points to 1.874% on Thursday, from 1.814% late Wednesday as trade tensions appeared to ease.

December gold

GCZ19, -0.60%

 on Comex skidded 0.7% lower to $1,483.20 an ounce after a 0.6% gain a day ago.

West Texas Intermediate crude for December delivery

CLZ19, +1.15%

 popped 1.5% amid the upbeat trade developments to $57.20 a barrel on the New York Mercantile Exchange.

The ICE U.S. dollar index

DXY, -0.07%,

a gauge of the greenback’s performance against six major rivals, fell 01% to 97.83, but has gained 0.6% so far this year.

In Asia overnight, the China CSI 300

000300, +0.18%

 rose 0.2%, the Shanghai Composite

SHCOMP, +0.00%

 was virtually unchanged. Hong Kong’s Hang Seng Index

HSI, +0.57%

 climbed 0.6%, while Japan’s NIKKEI 225 Index

NIK, +0.11%

added 0.1%. In Europe, the Stoxx Europe 600’s

SXXP, +0.20%

traded 0.3% higher.