Stock Futures Jump on Trade Deal Optimism

Traders work on the floor of the New York Stock Exchange.

NYSE

Stock futures jumped on Monday after U.S. and China officials cooled tensions over the weekend, laying the groundwork for President Donald Trump and China President Xi Jinping to clinch a trade deal this week.

Dow Jones Industrial Average futures added 238 points, or 0.5%. S&P 500 futures climbed 0.8% and Nasdaq 100 futures were up 1.3% with chip stocks like Nvidia leading the way in early trading.

“I think we have a very successful framework for the leaders to discuss on Thursday,” said Treasury Secretary Scott Bessent from the ASEAN Summit in Kuala Lumpur.

The framework potentially includes a delay of China’s rare earths restrictions that caused the latest trade flare-up, a spiking of Trump’s threatened 100% tariffs on China that were to start Nov. 1 and a resumption of Chinese purchases of soybeans. The agreement may include a resolution of the TikTok dispute with the U.S. getting a deal for the U.S. version of the social video app.

“I have a lot of respect for President Xi, and we are going to come away with the deal,” Trump said on Monday from Air Force One.

Chipmakers,the sector with the most to lose from tensions with China,lead the rally in early trading Monday.