The U.S. index has risen significantly after U.S. and Chinese presidents Donald Trump and Xi Jinping agreed to suspend the introduction of additional tariffs and resume trade negotiations during the G20 summit, CNBC reported yesterday.
The futures of the companies included in the Dow Jones Industrial Average (INDEX: DJI) have surged to 235 points after Trump and Jinping agreed not to impose new restrictions. The S&P 500 (INDEX: SPX) and NASDAQ 100 indices are also showing a positive trend. Dan Deming, KKM Financial CEO, stated:
"The markets appear to be content with the cooperative tone coming out of the meetings. To me, it felt like the contrarian play was to the upside post meetings."
Historically, June has been the best month for U.S. indices in recent decades. For example, the Dow Jones index has risen by 7.2%, reaching its best level since 1938. The S&P 500 has grown by 6.5% in the last month (its best mark recorded in June since 1955), while the NASDAQ has increased by 7.4% (its highest level since 2000).
Donald Trump said during the G20 summit that he plans relax the restrictions imposed on U.S. companies to trade with Chinese giant Huawei, while China wants to acquire more farm products made in the United States.
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