U.S. stock futures pointed to a higher start on Monday, lifted by moves by encouraging comments from President Donald Trump and other officials on trade talks, along with a move by China over the weekend to lower borrowing costs for companies.
Reports that Germany may also be considering stimulus measures underpinned gains for Europe stocks.
How are the major benchmarks faring?
Dow Jones Industrial Average futures YMU19, +1.01% rose 224 points, or 0.9%, to 26,130, while S&P 500 futures ESU19, +0.98% added 24 points, or 0.9%, to 2,915.75 and Nasdaq-100 futures NQU19, +1.16% rose 72.25 points, or 1%, to 7,684.75.
On Friday, the Dow Jones Industrial Average DJIA, +1.20% rose 306.62 points, or 1.2%, to 25,886.01, while the S&P 500 index SPX, +1.44% added 41.08 points, or 1.44%, to 2,888.68. The Nasdaq Composite Index COMP, +1.67% gained 129.38 points, or 1.67%, to 7,895.99.
The Dow has fallen for three consecutive weeks and lost 401.43 points or 1.53% last week. The S&P 500 index ended the week down 1.03% for a third week of falls.
What’s driving the market?
Global trade and stimulus hopes were fueling gains across U.S. stock futures and Europe and Asian stocks Monday. U.S. President Donald Trump played down recession fears on Sunday in comments to reporters, while his top economic adviser Larry Kudlow echoed those comments in appearances on Sunday talk shows.
Kudlow predicted a strong second-half performance for the U.S. economy and told Fox News Sunday that the administration was “looking at” a 10% tax cut for middle-income earners that was hinted at by Trump ahead of 2018 midterm elections.
Meanwhile, White House trade adviser Peter Navarro said it was a “certainty” the U.S. will have a “strong economy through 2020 and beyond with a bull market,” thanks to stimulus from major economies and “the largest trade deal ever in history.”
Apple Inc. AAPL, +2.36% Chief Executive Officer Tim Cook warned Trump at dinner Friday that tariffs could hurt his company and give rivals an advantage. Trump said Cook “made a very compelling argument, so I’m thinking about it.”
Elsewhere, investors in Asia cheered a move by the People’s Bank of China to reform interest rates, with the goal of lowering real interest rates for companies, as that country also faces a slowing economy. And Europe stocks got a lift after German Finance Minister Olaf Scholz over the weekend suggested the government could come up with $55 billion in stimulus if needed.
How are other markets trading?
Stocks closed higher in Asia, with the Shanghai Composite SHCOMP, +2.10%closing up 2% and Hong Kong’s Hang Seng Index HSI, +2.17% adding 2.2%.
In Europe, stocks were on the rise, with the pan-European Stoxx Europe 600SXXP, +0.91% rising 0.6%.
In commodities markets, the price of crude oil CLU19, +0.20% was up 0.6% to $55.21 per barrel, and gold GCZ19, -0.88% fell $14.90, or 1%, to $1,509.60.
The ICE U.S. dollar index DXY, +0.07% , meanwhile, was little changed.