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Stocks- Dow Futures Surge as Trade War Put on Hold

Published 21/05/2018, 11:45
© Reuters.  U.S. futures pointed to a higher opening bell on Monday.
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Investing.com – U.S. futures were higher on Monday, as the U.S. and China agreed to put tariffs on hold as they negotiate a trade agreement.

The S&P 500 futures was up 16 points or 0.60% to 2,729.25 as of 6:44 AM ET (10:44 GMT) while Dow futures increased 231 points or 0.93% to 24,952.0. Meanwhile tech heavy Nasdaq 100 futures rose 49 points or 0.71% to 6,923.00.

The trade war between the U.S. and China is “on hold” as the two work on a trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Sunday. The two countries had been engaged in a tit-for-tat over tariff disagreements over the last few months. However, China has yet to agree to cut the trade deficit despite President Donald Trump’s demand that the world’s second largest economy reduce its trade surplus by $200 billion.

Tesla (NASDAQ:TSLA) was among the top gainers in pre-market trading, rising 1.72% after CEO Elon Musk doubled the price of the new Tesla Model 3. Meanwhile Apple (NASDAQ:AAPL) rose 0.76% while Advanced Micro Devices Inc (NASDAQ:AMD) increased 2.00% and General Electric (NYSE:GE) gained 2.20%.

Elsewhere British American Tobacco (LON:BATS) was down 0.53% while infrastructure company Aegion Corp (NASDAQ:AEGN) dipped 2.26% and mining firm Vedanta Ltd (NYSE:VEDL) slipped 1.68%.

On the central banking front, Atlanta Fed president Raphael Bostic, Philadelphia Fed chief Patrick Harker and the head of the Minneapolis Fed, Neel Kashkari, will be giving speeches on Monday afternoon.

In Europe stocks were mixed. Germany’s DAX fell 36 points or 0.28% while in France the CAC 40 increased 37 points or 0.67% and in London, the FTSE 100 was up 61 points or 0.79%. Meanwhile the pan-European Euro Stoxx 50 lost 19 points or 0.55% while Spain’s IBEX 35 inched up six points or 0.07%.

In commodities, gold futures fell 0.57% to $1,284.00 a troy ounce while crude oil futures increased 0.34% to $71.61 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, was up 0.21% to 93.78.

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