On Monday morning, futures for the Dow Jones Industrial Average increased by 62 points or 0.2% to 28,546. Meanwhile, the S&P 500 index gained 7.80 points or 0.2% to 3,233.50. Another major stock index, which is the Nasdaq Composite rose 31.25 points to 8,741.75.
Dow futures continue to strengthen its positions for a third week in a row. Last week, the Dow Jones increased by 1.1%. The Nasdaq Composite reached the best weekly gain since August 30.
Moreover, all three benchmarks produced a second consecutive weekly advance. From the beginning of the year, Dow Jones jumped 21.98%. Meanwhile, the S&P 500 rose 28.55% and the Nasdaq Composite by 32.51% as of Friday.
Factors that influenced the stock markets
One of the biggest factors which continue to affect the stock markets is the trade war between the U.S. and China. Recently, China and the U.S. reached a phase-one agreement. This deal will improve market sentiment in 2020.
China’s cabinet agreed to lower tariffs for all trading partners on more than 850 types of products. According to the information released by China’s Finance Ministry.
The lowered import duties will apply to frozen pork. It makes sense as China experienced problems due to the lack of swine fever that reduced the meat supplies. Moreover, tariffs on some of the products will fall to zero.
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This decision will help to lower the tensions. Moreover, such decisions will have a positive impact on trade talks. The partial trade agreement will boost the economy of the respective countries. This move is the latest sign that the U.S. and China will sign the trade deal in the nearest future.
Moreover, the U.S. President is running for reelection so it in his best interest to solve the trade war as soon as possible.
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