US Market Rally Continues As Trade Talks Enter Second Day

U.S. President Donald Trump and Chinese President Xi Jinping (R) meet on the sidelines of the G20 Summit in Hamburg, Germany, July 8, 2017.

U.S. futures are pointing higher this morning as President Trump and Chinese President Xi Jinping enter their second day of trade negotiations.

On Monday Commerce Secretary Wilbur Ross told CNBC that there is a “very good chance” a deal can be reached. The two countries have until March 1 to make a deal before tariffs are increased.

Investors are being cautious as conditions at home are still volatile with the government shutdown for another week with no sign of a funding bill in site. President Trump said he would not sign a new budget deal unless he received the $5 billion he wants for his southern border wall.

After ending 2018 with disappointing results, markets are looking to rebound as renewed optimism has returned. The SPY and QQQ are both up on the year so far and looking to add to those gains early this morning.