U.S. stock futures indicated major indexes could be headed for fresh highs on Wednesday, after President Donald Trump said he may let a China trade-deal deadline slide if the two sides were making enough progress.
How are major indexes faring?
Dow Jones Industrial Average futures
rose 115 points, or 0.5%, to 25,521, while S&P 500 futures
rose 10.95 points, or 0.5%, to 2,755.75. Nasdaq-100 futures
climbed 41.75 points, or 0.6%, to 7,060.50.
Major indexes closed 2019 highs on Tuesday, with the Dow Jones Industrial Average
climbing 372.65 points, or 1.5%, to 25,425.76, while the S&P 500
rose 1.3% to 2,744.73, finishing above its 200-day moving average for the first time in 46 days. That marked the S&P’s longest sojourn under the key trend line since March 2016, according to the Dow Jones Market Data Group.
The Nasdaq Composite Index
advanced 1.5% to 7,414.62.
What’s driving the market?
Providing fresh optimism for investors, President Trump said Tuesday that he would allow for flexibility on a the timeline for a deal with China if an agreement looks close. The White House had previously referred to March 2 as a “hard deadline” for an agreement. Meanwhile, Chinese President Xi Jinping is expected to meet key members of the U.S. delegation on Friday, sources told the South China Morning Post.
A third day of bilateral trade negotiations were under way in Beijing, with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer expected Thursday for more high-level discussions. The White House had previously referred to a “hard deadline” for a deal as 12:01 a.m. Eastern time March 2 deadline.
Meanwhile, Trump said Tuesday a second government shutdown was unlikely, even as he expressed unhappiness with the tentative agreement that allows for 55 miles of new border fencing reached by Democratic and Republican lawmakers late Monday.
Investors will get January consumer prices at 8:30 a.m. Eastern Time, while the federal budget for December is due at 2 p.m. Eastern Time. Atlanta Federal Reserve President Raphael Bostic will appear in a moderated discussion at the European Financial Forum in Dublin, Ireland at 8:50 a.m. Eastern, while Philadelphia Fed President Patrick Harker will speak on the economic outlook at the Jewish Business Network lunch in Philadelphia at noon Eastern.
Cleveland Fed President Loretta Mester will speak on economic outlook and monetary policy in Lexington, Kentucky at 8:50 a.m. Eastern.
How were other markets trading?
Trade-deal optimism and a strong session for Wall Street on Tuesday inspired gains across global markets. In Asia, the Nikkei 225 index
jumped 1.3% and the Shanghai Composite rose nearly 2%. The Stoxx Europe 600
was poised for gains as European stock futures also climbed.
climbed over 1% after Saudi Arabia’s Energy Minister Khalid al-Falih told the Financial Times in an interview that the country would further reduce its oil production, to near 9.8 billion barrels a day in March. Gold
rose, while the U.S. dollar
slipped against its peers.
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