U.S. stock futures rose after Biden hinted that China might impose tariffs

U.S. stock index futures signaled a strong start for Wall Street on Monday, with some acknowledging President Joe Biden’s remarks about China’s tariff revision.

How is the stock index futures trading?
  • S&P 500 Future ES00
    Rose 23 points, or 0.6%, to 3,923

  • Dow Jones Industrial Average Future YM00
    168 points or 0.5% to 31,379

  • Nasdaq-100 Future Comp
    67 points or 0.5% increase to 11,908

US stocks closed mixed with the S&P 500 Index SPX on Friday
To make a profit after trading briefly in the bear-market area at the beginning of the session.

Dow Jones Industrial Average DJIA
According to Dow Jones market data, marking the longest rate trend since April 1932, it has seen its eighth consecutive weekly decline. S&P 500 and Nasdaq Composite Comp
Each has suffered seven consecutive weekly losses, their longest rate since March 2001.

What is driving the market?

Stock futures have risen since the end of Sunday, although previous highs closed.

Investors were ready to buy the defeated market by selling for a few weeks. This was despite reports of an increase in the number of Kovid incidents in Beijing. Where officials have increased orders for students and staff to stay at home and will conduct more mass examinations in the country’s second-largest city.

China CSI 300 XX: 000300
Decreased 0.5% and Hong Kong’s Hang Seng Index HK: HSI
Decreased by 1.2%.

Analysts have blamed President Joe Biden’s comments on the gains in equity index futures, saying that the tariffs imposed on China during the Trump administration were under consideration and would be discussed with Treasury Secretary Janet Yellen upon her return to the United States, according to Bloomberg News.

Biden added that the United States would protect Taiwan from any Chinese aggression.

Read: In Tokyo, Biden is set to launch a new Indo-Pacific trade agreement to replace the TPP.

“US noise in Asia, especially comments on tariffs, may have raised some momentary optimism in the market, but it will take longer for the bear market to recover, even though the S&P 500 is now trading below its 10-year average PE. [price earnings] For the first time since March 2020 and the cash flow is extremely high, “said Neil Wilson, chief market analyst at Markets.com in a note to clients.

Read: Buy Deep or Sell ‘Rip’ ?: ‘Sticky’ Inflation Fears Raise Consumer Concerns What’s Next for Stock Investors

Hunger for risk weighed on the dollar. ICE dollar index DXY,
Which measures the greenback against a basket of major currencies, down 0.5%. Oil price CL00
Was moderately higher. Gold price GC00
The dollar has risen about 1% since the recession.

There is no U.S. economic data on Monday’s calendar, but investors will keep an eye on the World Economic Forum in Davos, Switzerland, which is back after a two-year absence.

Read: Davis’s post-Covid return is burdened by climate, economic woes and war in Europe

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