U.S. President Donald Trump poses for a photo with China’s President Xi Jinping before their bilateral meeting during the G20 leaders summit in Osaka, Japan, June 29, 2019.
Kevin Lamarque | Reuters
U.S. stock futures surged on Sunday night after the U.S. and China agreed to hold off on slapping additional tariffs on their products in an effort to resume trade talks.
As of 10:06 p.m. ET Sunday, Dow Jones Industrial Average futures traded 199 points higher, implying a gain of 194.04 points at Monday’s open. S&P 500 and Nasdaq 100 futures also pointed to gains.
“The markets appear to be content with the cooperative tone coming out of the meetings. To me, it felt like the contrarian play was to the upside post meetings,” said Dan Deming, managing director at KKM Financial. “There was a great deal of bearishness in sentiment headed into the meeting. Many market observers were discounting any change in the narrative, which made many believe the risk was to the downside.”
Those gains prime Wall Street to start the second half of the year with a bang following a big first half. The S&P 500 rallied more than 17% to start off 2019, notching its best first half in more than 20 years.
That surge came after stocks recovered in June from a torrid May performance. The Dow soared 7.2% in June, its biggest gain for that month since 1938. The S&P 500, meanwhile, jumped 7.9% for the month, marking its best June performance since 1955.