Trade war truce triggered stocks rally
December 03, 2018 @ 13:12 UTC
U.S. stocks were poised to rally on Monday, with Dow futures up over 500 points after the U.S. and China agreed to call a truce to their trade war over the weekend, triggering relief buying of perceived riskier assets such as equities. Oil prices climbed nearly 5%, while the dollar tumbled.
Dow Jones Industrial Average futures YMZ8, +2.00% soared 539 points, or 2%, to 26,077. S&P 500 futures ESZ8, +1.81% jumped 53.95 points, or 2%, to 2,812.25. Nasdaq-100 futures NQZ8, +2.55% saw even bigger gains, up 176 points, or 2.5%, to 7,125.50.
On Friday, the S&P 500 index SPX, +0.82% rose 0.8%, to 2,760.17, while the Nasdaq Composite Index COMP, +0.79% added 0.8% to 7,330.54. The Dow Industrials YMZ8, +2.00% climbed 199.62 points, or 0.8%, to 25,538.46.
Both the S&P 500 and the Nasdaq logged their best weekly performance since December 2011, while the blue-chip index posted its strongest week since November 2016. A trade standoff between the U.S. and China saw a breakthrough at the G-20 meeting in Argentina, a gathering that included a highly-anticipated dinner between President Donald Trump and Chinese leader Xi Jinping. The two sides agreed to launch negotiations to cool trade tensions and discuss forced technology transfer, intellectual-property protection, non-tariff barriers, cyber and agriculture issues, among other issues.
Asian stocks also rallied, with Japan’s Nikkei NIK, +1.00% up 1% and the Shanghai Composite Index SHCOMP, +2.57% gaining 2.5%. European stocks also climbed in early trading, with the Stoxx Europe 600 index SXXP, +1.79% adding 2%.
Trade war truce triggered stocks rally, MarketWatch, Dec 03