Optimism that the United States and China are making significant progress toward bringing an end to the trade war that has roiled the economy in recent months has the Dow Jones Industrial Average and other major stock indices pointing north ahead of the year’s last trading session.
As of the time of writing, Dow futures signaled a more than 200 point rally from Friday’s close, implying a rise of around 0.89 percent. S&P 500 and Nasdaq futures were eyeing notable climbs of their own, with the former preparing to jump 0.70 percent and the latter 0.91 percent at the opening bell.
The bullish moves follow weekend reports that the US and China have narrowed the gap between their respective stances on the ongoing trade war and are close to reaching a compromise.
“Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute,” US President Donald Trump tweeted on Saturday, as CCN reported. Trump further said that the two sides had made “big progress” following a “very good call” with Chinese President Xi Jinping.
Just had a long and very good call with President Xi of China. Deal is moving along very well. If made, it will be very comprehensive, covering all subjects, areas and points of dispute. Big progress being made!
— Donald J. Trump (@realDonaldTrump) December 29, 2018
However, it’s unclear whether a trade deal would provide the market with enough footing to climb out of a downturn that has threatened to turn into something much more severe.