Market commenced trading with firm footing on the back of improvement on the U.S.-China trade front after the U.S. and Chinese officials said they were close to finalizing some parts of a trade agreement. The U.S. Trade Representative's office on Friday released a statement that said U.S. Trade Rep. Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke with Chinese Vice Premier Liu He on Friday and were close to completing some sections of an agreement with Chinese negotiators. Chinese reports also pointed to progress being made on trade.
Stocks have also gotten a boost from rising expectation that the Federal Reserve to deliver another quarter-point cut to its benchmark interest rate when policy makers conclude a two-day meeting on Wednesday. Futures have priced in about 23 basis points of reduction.
Further, stocks have gotten a boost from better-than-expected earnings. As per reports, the 206 companies of the S&P 500 companies reported earnings have topped market expectations.
Microsoft shares inclined 2.5% on news the company won a $10 billion cloud contract from the Defense Department. AT&T gained more than 4% after announcing a three-year plan that includes the addition of two new board members and the sale of up to $10 billion worth of non-core businesses in 2020.
In economic news, the U.S. trade deficit in September came in at $70.4 billion, below the August level of $72.8 billion.
In commodity news, the price of West Texas Intermediate crude oil for December delivery lost 85 cents, or 1.5%, to settle at $55.81 a barrel on the New York Mercantile Exchange, and the price of an ounce of gold fell $9.50, or 0.6%, to settle at $1,495.80 an ounce.
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