Fifteen minutes ahead of the cash open, S&P 500 futures were up by 57 basis points on the day. The mood was bullish as US Commerce Secretary Wilbur Ross announced on Sunday that licenses for US companies selling components to China’s Huawei would be introduced.
In the last year, the US government has made it very difficult for Huawei to develop, and the licenses are seen as step to defuse tensions.
The S&P 500 was also riding on a wave of optimism following Friday’s much better than expected US non-farm payrolls. Since this time last year, most FinTwit experts have been anticipating that the world economy would slow down enough to cause a significant bear market in stock markets. The inverse yield curve was highlighted as an excellent reason to be bearish. However, the latest NFP figures and stabilization in PMI indicators are defying that thesis altogether.