The S&P 500 Index ($SPX) (SPY) on Monday closed up +1.07%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +1.12%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.30%. December E-mini S&P futures (ESZ25) rose +1.12%, and December E-mini Nasdaq futures (NQZ25) rose +1.32%.
Stock index futures rallied on Monday and added to last Friday’s gains, with the S&P 500 and Nasdaq 100 posting 1-week highs, and the Dow Jones Industrials posting a 1.5-week high. Market sentiment has improved as US-China trade tensions eased after President Trump on Sunday said that “I think we’re going to be fine with China.” Stocks are also seeing support from optimism that Q3 earnings results will continue to surprise to the upside. Carry-over support from rallies in European and Japanese stocks to record highs on Monday also underpinned US stocks. Additionally, lower bond yields are supportive of stocks as the 10-year T-note yield fell -3 bp on Monday to 3.98%.
