U.S. stock index futures rose on Thursday as investors digested a key trade agreement between China and the U.S. as the corporate earnings season rolls on.
Around 7 a.m. ET, Dow Jones Industrial Average futures were up 82 points, indicating a gain of 117 points at the open. S&P 500 and Nasdaq 100 futures also pointed to strong gains at the open. The gains in futures put the major averages on track to hit fresh record highs.
President Donald Trump and Chinese Vice Premier Liu He signed a “phase one” trade deal in Washington on Wednesday. Under the agreement, China is set to buy an additional $200 billion in U.S. goods over the next two years.
As a result of the deal, U.S. exports to China should in theory rise to $263 billion in 2020 and $309 billion in 2021, CNBC reported. Both figures would represent a record-breaking acceleration of U.S. exports to China.
That said, China’s other suppliers of agricultural commodities will not be impacted by the Sino-U.S. trade deal since buying will be based on market principles, Vice Premier Liu He said, according to a report from state-owned CCTV on Thursday.
Despite the signing, some analysts believe additional tariffs could still be imposed and that trade uncertainty could pop up somewhere else, including in Europe.
The data calendar is quite crowded with weekly jobless claims, monthly retail sales and import prices, and the Philadelphia Fed manufacturing numbers due at 8:30 a.m. ET. Business inventories data and a National Association of Home Builders survey are also expected at 10 a.m. ET.