(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* Futures jump: Dow 0.94%, S&P 1.08%, Nasdaq 1.70%
By Shreyashi Sanyal
July 1 (Reuters) - U.S. stock index futures rose sharply on
Monday, with chipmakers making handsome gains, as trade tensions
between the United States and China eased after both sides
agreed to restart talks.
Futures jumped more than 1% when trading resumed on Sunday,
with the S&P 500 e-minis EScv1 and the Dow e-minis 1YMcv1
hitting record highs early Monday as investors returned to
riskier assets following the truce.
U.S. President Donald Trump offered concessions including no
new tariffs and an easing of restrictions on Huawei Technologies
Co Ltd HWT.UL in order to reduce tensions with Beijing.
Twenty-seven of the 28 Dow components trading before the
bell were higher, with chipmakers that have a sizable revenue
exposure to China climbing.
Intel Corp INTC.O , Advanced Micro Devices Inc AMD.O and
Micron Technology Inc MU.O gained between 3% and 4.6%.
Stocks saw their steepest sell-off this year in May after an
escalation in the U.S.-China trade dispute sparked concerns of a
global economic slowdown.
However, expectations of a more accommodative Federal
Reserve helped the S&P 500 and the blue-chip Dow Industrials
index .DJI post their best June performance in generations.
As financial markets cheered the latest development in trade
talks, traders scaled back on the probability of a half-point
rate cut this month to around 15%, from nearer 50% a week ago.
At 7:23 a.m. ET, Dow e-minis 1YMcv1 were up 251 points, or
0.94%. S&P 500 e-minis EScv1 were up 31.75 points, or 1.08%
and Nasdaq 100 e-minis NQcv1 were up 130.75 points, or 1.7%.
A rise in oil prices also lifted sentiment. OPEC and its
allies looked on track to extend supply cuts until at least the
end of 2019 at their meeting in Vienna this week. O/R
Among other stocks, shares of MGM Resorts International
MGM.N , Wynn Resorts Ltd WYNN.O , Melco Resorts &
Entertainment Ltd MLCO.O and Las Vegas Sands Corp LVS.N
climbed between 1% and 5% after gambling revenue in the Chinese
territory of Macau rose more than expected in June. On the macro front, investors awaited U.S. June
manufacturing activity data. This would follow factory activity
surveys that have painted a downbeat picture across much of
Europe and Asia in the previous month.