Market Snapshot: Stock futures climb after report China, U.S. agree to cancel tariffs in stages

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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, +0.49%   rose 135 points, or 0.5%, to 27,566, while S&P 500 futures ESZ19, +0.39%  rose 12.90 points, or 0.4%, to 3,088.25. Nasdaq-100 NQZ19, +0.48%  futures added 42 points, or 0.5%, to 8,248.25.

On Tuesday, The Dow Jones Industrial Average DJIA, +0.00%  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, -0.29%  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 Wednesday 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.