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
rose 150 points, or 0.6%, to 27,580, while S&P 500 futures
rose 13.65 points, or 0.4%, to 3,089.25. Nasdaq-100
futures added 42.75 points, or 0.5%, to 8,250.
On Tuesday, the Dow
lost less than a point to end at 27,492.50, while the S&P 500 index
gained 2.16 points, or 0.07%, at 3,076.78. The Nasdaq Composite Index
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
jumped 6 basis points to 1.874% on Thursday, from 1.814% late Wednesday as trade tensions appeared to ease.
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
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
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
rose 0.2%, the Shanghai Composite
was virtually unchanged. Hong Kong’s Hang Seng Index
climbed 0.6%, while Japan’s NIKKEI 225 Index
added 0.1%. In Europe, the Stoxx Europe 600’s
traded 0.3% higher.