Stock futures soar as U.S., China agree to truce on tariff war

U.S. stock-market futures surged on Monday after Washington and Beijing agreed over the weekend to pause their tariff war, indicating likely gains later on Wall Street.

How are the benchmark indexes faring?

Dow Jones Industrial Average futures YMU19, +1.03% jumped 286 points, or 1%, to 26,877, and S&P 500 futures ESU19, +1.08%  rose 33.3 points, or 1.1%, to 2,977. Nasdaq Composite futures NQU19, +1.68%  surged 127.25 points, or 1.7%, to 7,821.

On Friday, the Dow Jones Industrial Average DJIA, +0.28%  added 207.06 points, or 0.8%, to 25,532.05. The S&P 500 index SPX, +0.58%  rose 22.54 points, or 0.8%, to 2,834.41. The Nasdaq Composite Index COMP, +0.48% gained 87.47 points, or 1.1%, to 7,734.49.

The gains come after the Dow logged its best June in more than 80 years.

What’s driving the market?

After meeting China’s President Xi Jinping on Saturday at the G-20 leaders summit in Japan, President Donald Trump said the U.S. would maintain current tariffs but hold off on new ones. Trump also said he would ease up on a ban on Huawei, allowing U.S. companies to sell their products to the China tech group, though the company will remain on a trade blacklist.

Trump said talks went “even better than expected” and that “we’re going to work with China where we left off.”

I had a great meeting with President Xi of China yesterday, far better than expected. I agreed not to increase the already existing Tariffs that we charge China while we continue to negotiate. China has agreed that, during the negotiation, they will begin purchasing large…..

— Donald J. Trump (@realDonaldTrump) June 29, 2019

Data out of China was less cheery, though, with a private gauge showing activity in China’s manufacturing sector cooling in June and moving into contraction territory.

The week

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