Dow Jones Signals Positive Open as Trade Deal Signing Nears

NEW YORK, N.Y. – US stock futures point to a slightly higher open on Friday, with the Dow Jones Industrial Average rising by around 123 points as the US and China near signing of the phase one agreement to end the long-standing trade war between two of the largest economies in the world.

The stock index futures in the US were higher early on Friday, strengthening gains from the previous session following the latest headlines on trade.

At around 2:45 a.m. on Friday, the Dow Jones Industrial Average futures tracked a 123 point-increase, suggesting more optimistic trading open of over 98 points. The Nasdaq 100 and S&P 500 futures are also pointing to a more positive open on Friday and the final trading session for the week.

Previously, the Dow Jones increased by around 200 points, while the S&P 500 index recorded a 0.9% gain during the market close. The Nasdaq Composite also ended Thursday with 0.7% gains, with all three major indexes in the US touched record highs.

With the market waiting for a trade deal ahead of the scheduled tariff on Chinese imports on Sunday, Wall Street was looking towards solid gains.

The global stock market was mostly boosted for the day following the latest headlines that state that the US and China have agreed, in principle, regarding the phase one of the trade agreement.

As part of the trade deal, Washington would stop the new tariff increase on billions-worth of Chinese imports, which was originally scheduled to take effect on December 15, Sunday. Along with the agreement, the US government has also offered to cute the $360 billion worth of tariffs on Chinese goods by half, in exchange for China to purchase more agricultural products in the US.

Reports have also said that US President Donald Trump had already agreed with the deal.

According to the chief US equity strategist at Morgan Stanley, Mike Wilson, the trade war between the two countries has been going on for a while and the recent update is the good news the market has been waiting for. But, Wilson also questioned how much of that trade deal optimism will boost gains in the market.

On Thursday trading session, the Nasdaq Composite has already tracked a 31.4% increase for 2019, while the S&P 500index gained as much as 26.4%, and the Dow Jones Industrial Average rose by 20.6%.

Aside from the trade deal optimism driving the market on Friday, another factor that pushed recent gains is the exit polls showing the Conservative party winning a significant majority in the UK elections.