Stocks Set To Rebound From 3-Day Slide Following Dow's 100+ Future Increase
- Posted on December 05, 2019
- Business
- By admin admin
The U.S stock index
futures rallied early Wednesday morning. This was boosted by a news report from
Bloomberg that said the U.S. and China were edging closer to a trade deal.
Around 8:30 a.m. ET, Dow
Jones Industrial Average futures were up 134 points, indicating a gain of
124.19 points at the open. S&P 500 and Nasdaq 100 futures also pointed to
sharp gains to start off the session.
Futures pares their gains,
however, after the release of disappointing jobs data.
The Bloomberg report,
which cited that people who were familiar with the talks, said the two
countries were moving closer to agreeing on the amount of tariffs that would be
rolled back in a so-called phase-one trade deal.
The Dow dropped 280 points
on Tuesday and at one point was down as much as 457 points after President
Donald Trump said it may be better to wait until after the election before
making a deal with China. It was the third day of losses for stocks as traders
were worried that a deal would not be hatched before the U.S. is due to impose
fresh duties on Chinese goods on Dec. 15.
Shares of chipmakers and Apple gained in
premarket trading on Wednesday, however, the gains were muted as investors were
cautious about the news report. Apple was up 0.7% in the premarket. The VanEck
Vectors Semiconductor ETF (SMH) climbed 1.2%. Nvidia and Micron Technology
traded higher by 1.6% and 1.5%, respectively. These stocks have been
whipsawed by trade deal-related headlines for the last two years.
It is being reported that market players are also
monitoring high-level meetings between Trump
and other NATO leaders, as the
institution celebrates its 70th anniversary. Markets were rattled on Tuesday
after Trump told reporters in London that it might be better to conclude a
trade deal with China after the forthcoming presidential elections.
Meanwhile, France and the wider European Union
have promised to retaliate against potential U.S. tariffs on French goods. The
U.S. Trade Representative announced on Monday a list of French goods that could
see tariffs of up to 100%. The decision came after France introduced a digital
services tax, which the U.S. argues treats American tech companies unfairly.
Other European countries, including the U.K., have plans to impose digital
taxes as well.
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