Futures on the Dow and broader U.S. stock market rose in overnight trading Thursday after President Trump acknowledged that trade talks with China are going very well, fueling hopes of further progress on Friday.
Futures contracts on the top U.S. indexes continued higher Thursday evening. The Dow Jones Industrial Average (DJIA) futures price rose 46 points, or 0.2%, to 26,530.00. The blue-chip index had gained 150 points by the close of New York trading at 4:00 p.m. ET.
S&P 500 futures were up 0.1% to 2,945.25. The Nasdaq 100 contract added 0.2% to 7,774.00.
Donald Trump told reporters Thursday that trade talks between U.S. and Chinese officials went “very well.” Although the president didn’t elaborate, he expressed optimism that further progress would be made on Friday when the two delegations resume their negotiations.
Optimism around the trade summit sent equity markets sharply higher on Thursday and a repeat performance is likely if more good news comes out of Washington on Friday.
Despite the apparent progress, a comprehensive agreement between the two sides remains unlikely. For starters, China has narrowed the agenda for this week’s summit, leaving industrial policies and government subsidies off the table. Secondly, Chinese officials are reportedly looking for a mini deal that could lessen the blow of tariffs on their exports. Finally, President Trump previously stated that any final resolution to the trade war has to be be “100% for us,” meaning that a partial agreement won’t be entertained indefinitely.
On Friday, Trump is scheduled to meet with the head of China’s negotiating team.
Unless stop-gap measures are agreed to on Friday, the United States is set to raise tariffs on $250 billion worth of Chinese goods next week. Under Trump, the White House has implemented tariffs on more than $360 billion worth of Chinese imports. Duties affecting another $160 billion are planned for Dec. 15.
Last modified: September 23, 2020 1:07 PM