US. The stock markets were ready for a rally on Monday. Dow futures jumped over 500 points after the US and China voted for a cease-fire over the weekend, easing perceived riskier assets such as equities.
The price of oil rose nearly 5%, while the dollar fell.
How are the main benchmarks traded?
Dow Jones Industrial Average Futures
YMZ8, + 1.93%
surged 539 points or 2% to 26,077. S & P 500 futures
ESZ8, + 1
increased by 53.95 points, or 2% to 2,812.25. Nasdaq 100 futures
NQZ8, + 2.50%
recorded 176 points, or 2.5%, even higher growth to 7.125,50.
Friday's S & P 500 Index
SPX, + 0.82%
rose 0.8% to 2,760.17, while the Nasdaq Composite Index
COMP, + 0.79%
increased by 0.8% to 7,330.54. The Dow Industrials
YMZ8, + 1.93%
climbed 199.62 points, or 0.8%, to 25,538.46.
Both the S & P 500 and Nasdaq posted their best weekly performance since December 2011, while the blue chip index recorded its strongest week since November 2016.
Read: A rudder-less Fed calls for more volatility on the stock markets, analysts say
What drives the market?
A US-China trade dispute made a breakthrough at the G-20 meeting in Argentina At this gathering, a much-anticipated dinner was held between President Donald Trump and Chinese leader Xi Jinping. Both sides agreed to launch negotiations to cool trade tensions and discuss forced technology transfer, intellectual property protection, non-tariff barriers, cyber and agricultural issues.
Read: Truce should ease investors' immediate fears, but obstacles remain
If these talks are unsuccessful, planned tariffs on Chinese goods worth $ 200 billion will rise from the current 10% to 25%, an increase that should come into effect in early 2019. China also said it would buy "very considerable" US agriculture, energy and industrial goods.
Trade optimism had an impact on other oil assets
CLF9, + 4.06%
rose nearly 5% as investors looked for an OPEC meeting on December 6. Profits came when Russian President Vladimir Putin said over the weekend that his country and Saudi Arabia have agreed to expand a deal to cut production. Qatar also said it will retire from OPEC on January 1, 2019 in Monday's announcement.
The New York Stock Exchange and Nasdaq will close on Wednesday as a national day of mourning is held in memory of former President George Herbert Walker Bush. A state funeral will be held on the same day, and during the trading session on Monday, a moment of silence will also be observed.
What do strategists say?
"In reality, there was never a likelihood that one side would decline in their trade disputes, and a Christmas approach near Christmas would probably have been counterproductive maintaining the current status quo and postponing the 15% increase in tariffs on Chinese goods. Announcing January 1 is not only a positive step, but also a relatively straightforward option, "said Michael Hewson, CMC Markets Market Market Analyst.
"Who knows, President Xi and the Chinese authorities could pull a hare out of their hats during this new negotiation period, believing that the US commercial agents are keeping the tariffs permanently at $ 10 billion, but that's the case If so, "said Chris Weston, research manager at Pepperstone, in a message to customers.
But for the time being, according to Weston, trade development has triggered a "global breath of relief" for the markets. Whether this is sustainable, "now depends on the economic data due this week and whether OPEC is now delivering the goods."
How did other markets trade?
Asian stocks also rallied with the Japanese Nikkei
NIK, + 1.00%
by 1% and the Shanghai Composite Index
SHCOMP, + 2.57%
gained 2.5%. European equities also rose in early trading with the Stoxx Europe 600 index
SXXP, + 1.70%
GCG9, + 0.77%
surged 0.8% to $ 1,235.40 an ounce, while the ICE Dollar Index
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