Stock market set to jump at open on 90-day U.S.-China trade detente

“U.S. stock index futures jumped around 2 percent on Monday, setting Wall Street up to add to last week’s strong gains, after the United States and China declared a temporary trade truce,” Shreyashi Sanyal reports for Reuters. “Strong gains in Apple Inc and other technology stocks pushed Nasdaq futures up more than 2 percent, while S&P 500 e-minis touched a near 1-month high. Gains in Dow futures set the blue-chip index up for a near 450-point gain at the open.”
“Washington and Beijing agreed to a 90-day trade ceasefire during the G20 summit in Argentina on Saturday and U.S. President Donald Trump said China has agreed to ‘reduce and remove’ tariffs below the 40 percent level that the country is currently charging on U.S.-made vehicles,” Sanyal reports. “However, the White House also said that the existing 10 percent tariffs on $200 billion worth of Chinese goods would be lifted to 25 percent if no deal was reached within 90 days.”
“The trade optimism spilt over to shares of Apple, which gained 3.3 percent in premarket trading,” Sanyal reports. “Trump had said last week that the next round of tariffs could also be placed on the company’s iPhones, as part of the $267 billion list of goods not yet hit by tariffs.”
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MacDailyNews Take: Hopefully, the U.S.-China trade negotiations are fruitful!
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018