The specter of even a limited trade deal between the United States and China sent stock futures surging Friday, Oct. 11, ahead of a high-stakes meeting between President Donald Trump and Chinese Vice Premier Liu He.
Futures on the Dow Jones industrial average were up nearly 300 points, or 1%, early Friday morning. Futures on the Standard & Poor and Nasdaq composite were also up 1 percent. The jump poised the Dow, S&P and Nasdaq to erase the losses from earlier in the week. European markets, including the DAX and FTSE, were all in the green.
Friday's implied markets open followed Thursday's meetings between Robert Lighthizer, the president's trade chief, and Treasury Secretary Steven Mnuchin, with a team from Beijing headed by Chinese Vice Premier Liu. People familiar with the talks told The Washington Post on Thursday that the Chinese delegation, which included the country's central bank chief and a hard-line commerce minister, brought a proposal for an "early harvest" accord.
For his part, Trump told reporters on Thursday that the talks were "going really, really well," adding: "They're basically wrapping it up."
Earlier in the day, Trump had tweeted that he would meet with Liu at the White House on Friday.
"Big day of negotiations with China," he tweeted. "They want to make a deal, but do I?"
Meanwhile, oil prices jumped 2% overnight. Reuters reported that an Iranian-owned oil tanker had been struck, likely by missiles, in the Red Sea off Saudi Arabia's coast on Friday. The incident had yet to be independently confirmed but was circulating in Iranian media, sometimes with contradictory information. Still, such an incident would likely escalate already-heated tensions between the Iran and Saudi Arabia and become the latest flash point involving oil tankers in the Gulf.
The preliminary reading for October consumer sentiment from the University of Michigan was also set to be released on Friday. Economists surveyed by Dow Jones expect sentiment to fall to 92 from 93.2 at the end of September.
American consumers, often cited as holding up the global economy, are growing increasingly anxious about the trade war with China. The last survey showed a near-record number of consumers citing trade policies as a drag weighing on the economy.
This article was written by Rachel Siegel, a reporter for The Washington Post.