(Reuters) – U.S. stock index futures hovered near record-highs on Tuesday, buoyed by optimism about the global economy in the wake of improving trade relations between Washington and Beijing.
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., December 17, 2019. REUTERS/Brendan McDermid/File Photo
Volumes are expected to decline this week as traders break for the Christmas holidays, with the main U.S. stock exchanges to close at 1 p.m. ET on Tuesday and remain shut on Christmas Day.
All three major stock indexes closed at record-highs on Monday, after President Donald Trump said the United States and China would sign their Phase 1 trade pact “very shortly”.
“This holiday period should be rather calm as trade updates appear very constructive as we near the finalization of the phase-one trade deal next month,” Edward Moya, senior market analyst at OANDA, wrote in a note.
A much-awaited breakthrough in the trade war between the world’s top two economies has sent financial markets across the world into record territory this month. [MKTS/GLOB]
The S&P 500 .SPX is up nearly 29% so far in 2019 and set for its best year since 2013, also powered by three interest rate cuts by the Federal Reserve and easing fears of a recession.
Investors were wary at the beginning of the month about the stock market mirroring a slump from December 2018, when U.S.-China trade tensions escalated sharply, marking the worst December on Wall Street since the Great Depression.
“The reason we won’t see a repeat of last year is because there are no fears of any of the major central banks tightening policy anytime soon,” Moya said.
At 7:15 a.m. ET, Dow e-minis 1YMcv1 were up 22 points, or 0.08%. S&P 500 e-minis EScv1 were up 2.75 points, or 0.09% and Nasdaq 100 e-minis NQcv1 were up 7.25 points, or 0.08%.
Among the few individual movers premarket, Advanced Micro Devices Inc (AMD.O) rose 0.9% after RBC Capital Markets raised it price target on the chipmaker’s shares on improving data center demand.
Boeing Co (BA.N) was indicated slightly higher, a day after the beleaguered planemaker ousted Chief Executive Dennis Muilenburg as it grapples with the crisis around its grounded 737 MAX jets.
Reporting by Manas Mishra in Bengaluru; Additional reporting by Shreyashi Sanyal; Editing by Saumyadeb Chakrabarty