Dow futures up 300 points after Biden hints that China tariffs could be reconsidered

U.S. stock market futures were pointing to a stronger start for Wall Street on Monday, and some credited the move to President Joe Biden’s comments on a reconsideration of China’s tariffs.

How are stock index futures traded?
  • Futures S&P 500 ES00,
    + 0.85%
    rose 38 points, or 1%, to 3,938

  • Dow Jones Industrial Average YM00 Futures,
    + 0.94%
    rose 330 points, or 1%, to 31,544

  • Nasdaq-100 futures COMP,
    rose 80 points, or 0.6%, to 11,920

US equities closed mixed on Friday, with the S&P 500 SPX index,
+ 0.01%
Making a profit after trading briefly in bearish territory at the beginning of the session.

The Dow Jones Industrial Average DJIA,
+ 0.03%
saw its eighth consecutive weekly decline, marking its longest streak of losses since April 1932, according to Dow Jones Market Data. The S&P 500 and the Nasdaq Composite COMP,
each suffered seven consecutive weekly losses, its longest loss since March 2001.

What is driving the markets?

Stock futures were up from Sunday to the end, although they were down from previous highs.

Investors seemed willing to buy a market hit by weeks of sales. This was despite reports of an increase in COVID cases in Beijing. where officials extended an order for students and workers to stay home and conduct more mass tests in the country’s second-largest city.

Analysts attributed the gains in the futures of the equity index to comments from President Joe Biden, who said Chinese tariffs imposed during the Trump administration were under consideration and would be discussed with Treasury Secretary Janet Yellen. , when he returned to the United States.

Biden also said the United States would defend Taiwan from any aggression from China.

Reads: Biden launches new Indo-Pacific trade pact in Tokyo to replace TPP

“U.S. noise in Asia, especially tariff comments, may have sparked fleeting optimism in the market, but it will take more than that to restore the bear market, even though the S&P 500 is now trading below its average PE 10 years. [price earnings] for the first time since March 2020 and cash levels are extremely high, “said Neil Wilson, chief market analyst at, in a note to clients.

Reads: Buy the downside or sell the “rip” ?: What’s ahead for stock investors as fears of “sticky” inflation raise consumer concerns

Risk appetite weighed on the dollar. The ICE DXY dollar index,
which measures the greenback against a basket of major currencies, fell 0.5%. CL00 oil prices,
+ 0.93%
they were modestly taller. GC00 gold prices,
+ 0.84%
rose nearly 1% as the dollar withdrew.

There is no US economic data on Monday’s calendar, but investors will be watching the World Economic Forum in Davos, Switzerland, which returns after a two-year absence.

Reads: The return of post-COVID Davos laden with climate, economic problems and a war in Europe

Which companies are in focus?
  • Actions of VMware Inc.
    + 0.80%
    jumped 22% after chip maker reports Broadcom Inc.
    was in talks to buy the cloud computing business enterprise.

How are other assets traded?
  • The performance of the TMUBMUSD10Y at 10 years,
    The rating rose 3 basis points to 2.823%, while that of TMUBMUSD02Y at 2 years,
    The rating rose 3 basis points to 2.603%.

  • The ICE DXY dollar index,
    a measure of the currency against a basket of six main rivals, fell 0.8%

  • Bitcoin BTCUSD,
    + 1.59%
    it was slightly higher than $ 30,470

  • CL.1 oil futures,
    + 0.93%

    + 0.93%
    rose, with West Texas Intermediate crude in July’s most active contract rising 1% to $ 111.42 a barrel.

  • GC00 Gold Futures,
    + 0.84%
    they were also higher, with gold for the June GCM22 delivery,
    + 0.84%
    up to $ 1,862 per ounce.

  • In European equities, the Stoxx Europe 600 SXXP,
    + 0.75%
    increased by 0.7%, while the FTSE 100 UKX,
    + 1.13%
    rose 1.1%.

  • In Asia, the Shanghai Composite SHCOMP,
    + 0.01%
    flat finish, while China CSI 300 000300,
    fell by 0.5% and the Hong Kong Hang Seng HSI index,
    fell 1.1%. Nikkei Index 225 from Japan NIK,
    + 0.98%
    increased by 0.9%.

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