U.S. stock index futures on Thursday appeared set to trade modestly higher, amid continued easing of tensions on two of the most pressing issues of the week: U.S.-China talks and a partial government shutdown
How are equity markets faring?
Futures for the Dow Jones Industrial Average YMH9, +0.32% are up 101 points, or 0.4%, at 25,889, while those for the S&P 500 ESH9, +0.25% are climbing 8.65 points, or 0.3%, at 2,758, while Nasdaq-100 futures NQH9, +0.34% were rising 28 points, or 0.4%, at 7,044.25.
On Wednesday, the Dow DJIA, +0.46% rose 117.51 points, or 0.5%, to 25,543.27, while the S&P 500 index SPX, +0.30% climbed 8.30 points, or 0.3%, to 2,753.03, while the Nasdaq Composite COMP, +0.08% gained 5.76 points to 7,420.38, after failing to hold above 7,431.50, which would mark the end of a bear market that began on Dec. 21.
See: The Nasdaq is about to exit from bear-market territory
Read: Morgan Stanley warns of a looming earnings recession
What’s driving the market?
High-level bilateral tariff talks between China and the U.S. were under way, amid reports indicating that President Donald Trump may extend the tariff truce with Beijing by another 60 days if a trade deal appears near, Bloomberg News reported Wednesday night.
President Trump has described talks, among the biggest concerns for market participants, as “going very well.” However, some observers are expecting only a limited trade deal to come to fruition, particularly if a March deadline is not extended.
Meanwhile, Trump was set to sign border-security legislation, which would avert a partial government shutdown.
Thus far, market gains have been underpinned by optimism on trade and progress in shutdown talks domestically, as well as a Federal Reserve that has adopted a wait-and-see stance on rate increases. That combination of factors has bolstered the buying mood on Wall Street, even if questions about the health of the global economy persist.
Earlier, reports on Japanese gross domestic product matched market expectations, while Chinese exports and imports were better than expected, as German growth numbers stagnated, providing, all totaled, a mixed picture of the state of the international economy, but perhaps sufficiently strong results to provide limited optimism, market participants said.
In continuing talks surrounding Britain’s attempts to exit from the European Union, U.K. Parliament is slated to debate a motion that would allow the government to continue negotiating and seek changes to the Irish backstop, the biggest sticking point for a orderly Brexit.
Read: Brexit Brief: British PM May faces Valentine’s Day defeat
What are strategists saying?
“Overall, the figures confirm the global economy is in better shape than originally thought, and that has lifted investor confidence. That fact that China’s economy is showing some signs of improvement might mean Beijing will be less susceptible to pressure from the US regarding the trade dispute,” David Madden, market analyst at CMC Markets UK.
Which stocks are in focus?
Coca-Cola Co. KO, +0.26% shares slipped after the drinks giant reported results ahead of the opening bell on Thursday. Nvidia Corp. NVDA, +1.13% was set to report corporate results after the closing bell.
Shares of Cisco Systems Inc. CSCO, -0.81% jumped after earnings and network giant’s outlook topped Wall Street expectations.
Read: Cisco stares down geopolitical unrest and cloud downturn, and stock emerges higher
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