For what seems like the millionth week in a row, S&P 500, Dow Jones, and Nasdaq futures were all trading lower at Monday’s opening. This comes after a strong week last week that went all the way into Friday, with reports of positive momentum on the “phase one” trade deal with China. That came to a halt Monday after reports from Beijing read that China wanted to have more talks with President Trump before signing off on this deal.
The signing of this “phase one” deal would be a fantastic step forward in our relationship with China. In the proposed deal, China would agree to buy 40-50 billion more in U.S. farm goods, and President Trump would hold off on new tariff increases. The results would be a net positive for the immediate future of both the U.S. and Chinese economies. There are a lot of moving parts concerning this prospective trade deal, and even if passed, it will not solve all our issues with China, but it would sure be a good start.