Market Overview

Trade war truce triggered stocks rally

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
Article Rating
Rate this post