US equity futures were up Monday morning on optimism regarding trade relations with China. Washington and Beijing agreed to a 90-day trade détente and China agreed to remove and reduce tariffs on American made cars.
Investors interpreted this news as positive Monday morning as all three major US indices pushed higher.
- Nasdaq futures (NQ) were up as much as 2.7%
- Dow futures (YM) were up as much as 2.1%
- S&P 500 futures (ES) were up as much as 2.0%
Paving the way in the tech sector were Apple (AAPL) and US chipmakers Micron Technology Inc (MU) and Advanced Micro Devices Inc (AMD), shares of which all saw notable gains Monday morning.
Additionally, US automakers including Tesla (TSLA), General Motors (GM) and Ford (F) saw gains Monday morning on the positive news.
Despite the hopeful outlook, the burden now falls on China and the US to build a lasting trade agreement within the next 90 days. If no deal is reached, the White House stated the 10% tariffs currently imposed on Chinese goods would be raised to 25%.
The chart above was created for FREE using the NinjaTrader’s award winning trading platform. The price action of Tesla (TSLA) is displayed since the start of 2018 on a daily timeframe. The volume up down and exponential moving average indicators have been added as barometers of market sentiment.