Stock futures dip after five-day surge

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U.S. stock index futures dipped on Friday, after rallying for the past five sessions on hopes of a resolution in the U.S.-China trade dispute and assurances from the Federal Reserve that it would be patient on interest rate hikes.

FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 10, 2019. REUTERS/Brendan McDermid 11 Jan 2019 09:11PM(Updated: 11 Jan 2019 09:11PM) Share this content

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REUTERS: U.S. stock index futures dipped on Friday, after rallying for the past five sessions on hopes of a resolution in the U.S.-China trade dispute and assurances from the Federal Reserve that it would be patient on interest rate hikes.

The steady start to 2019 has lifted the S&P 500 by over 10 percent from a 20-month low it touched around Christmas on hopes of a trade deal, strong data on U.S. jobs growth and dovish views from the Fed. The benchmark index’s five-day winning streak is its longest since September.

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Futures pointed to slight opening losses for the main three indexes, but the Nasdaq Composite index closed at a level on Thursday that was only a couple of points away from its 50-day moving average, a level seen important for short-term momentum.

U.S. officials expect China’s top trade negotiator may visit Washington this month, signaling that higher-level discussions are likely to follow this week’s talks with mid-level officials in Beijing.

With big U.S. banks kicking off fourth-quarter earnings next week, investors will watch for companies’ views on economic growth in 2019. Concerns about a slowdown in growth, in the wake of the U.S.-China trade war and rising interest rates drove a selloff in stocks in the final quarter of 2018.

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