U.S. Futures Surge on U.S.-Canada Trade Deal

U.S. futures pointed to a higher opening bell on Monday amid news that the U.S. and Canada reached a trade agreement late on Sunday.

The S&P 500 futures rose 18 points or 0.62% to 2,937.00 as of 6:45 AM ET (10:45 GMT) while Dow futures gained 209 points, or 0.79%, to 26,685.0. Meanwhile tech heavy Nasdaq 100 futures increased 59 points, or 0.77%, to 7,714.25.

News of the trade deal bolstered investor sentiment as trade tensions eased.

The deal was renamed the United States-Mexico-Canada Agreement and will give the U.S. access to Canadian dairy market and also cap Canada’s auto exports to the U.S.

U.S. President Donald Trump had given Canada until the end of September to agree on a deal or face being left out of the new trade agreement. The U.S. already sealed a deal with Mexico, the third NAFTA member, earlier in the month.

Tesla (NASDAQ:TSLA) was among the top gainers in premarket trading, rising 15.40% after executive Elon Musk reached a settlement with the U.S. Securities and Exchange Commision on Saturday, which allows Musk to remain as CEO.

Bank of America (NYSE:BAC) rose 1.36% while Micron Technology Inc (NASDAQ:MU) increase 0.71% and Caterpillar (NYSE:CAT) was up 1.00%.

Elsewhere, Facebook (NASDAQ:FB) was down 0.13% after the social media giant reported that an unknown number of hackers obtained access to the logins for as many as 50 million accounts. Intel (NASDAQ:INTC) fell 1.67% while Advanced Micro Devices Inc (NASDAQ:AMD) decreased 2.40%.

In Europe stocks were up. Germany’s DAX rose 66 points or 0.54% while in France the CAC 40 was up 13 points or 0.25% and in London the FTSE 100 increased 5 points or 0.07%. Meanwhile the pan-European Euro Stoxx 50 gained 13 points or 0.25% while Spain’s IBEX 35 surged 76 points or 0.82%.

In commodities, gold futures slumped 0.60% to $1,189.00 a troy ounce while crude oil futures rose 0.11% to $73.33 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, fell 0.06% to 94.74./reuters.com

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