US STOCKS-Futures surge as U.S.-China restart trade talks
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.
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila)
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