- Futures on the Dow Jones Industrial Average (DJIA) point to a higher stock market open.
- Clarity around the U.S.-China trade deal could drive the stock market.
- Stronger-than-anticipated economic growth will be another tailwind.
Futures on the Dow Jones Industrial Average (DJIA) are up early Monday morning as the stock market looks to stitch together another weekly gain. The stage seems set for the Dow to open the week on the front foot as the U.S. and China seem to be playing together nicely after their latest trade deal.
Xi Jinping praised the trade deal between the two countries following a phone call with President Trump on Friday. This should soothe concerns about any potential cracks looming beneath the pact and help the Dow clock another day of gains. More importantly, the Chinese finance ministry released important details regarding the trade deal. Beijing has decided to lower tariffs on more than 850 products beginning Jan. 1.
China has also announced that it will reduce tariffs on the import of frozen pork to 8 percent from the earlier level of 12 percent. The country has been forced into taking such a step to plug the shortage of pork in the country. In fact, China’s pork imports through the eleven months of 2019 have jumped 58 percent over the same period last year.
Now that China is looking to lower import tariffs, demand for American pork in the country should improve. Importers will look to reduce the supply shortage that has caused a massive bump in pork prices. All of this paints a favorable picture for the U.S. stock market this week.
Dow futures jump as trade deal enthusiasm fails to die down
Dow Jones futures are up 35 points, or 0.12 percent, as at 6.18 am ET.
S&P 500 futures are up 0.16 percent, while Nasdaq Composite futures are up 0.20 percent. In all, the stock market looks set to open higher today, and it won’t be…