The Dow Is Rallying Again as New Year Trading Starts


U.S. stock futures advanced on Thursday, buoyed by optimism that a trade deal between the U.S. and China will keep the economy humming.

Futures on the Dow Jones Industrial Average gained more than 170 points, and European and Asian stocks also rose. The S&P 500 and Nasdaq Composite were higher as well.

Tim Duy, a University of Oregon professor who closely tracks the Federal Reserve, plotted the return of the S&P 500 on a logarithmic scale to show that the current gains are nothing like the acceleration from the late 1990s. Duy says there the current performance is not “an unexplainable deviation from fundamentals,” but rather an expected recovery from excessive pessimism.

There wasn’t much in the way of new developments for traders to chew on, The U.S. and China are set to sign a preliminary trade pact in the middle of the month. The People’s Bank of China decided to cut bank reserve requirements to help shore up the world’s second-largest economy.

Weekly jobless claims data is due at 8:30 a.m. Eastern time.

Write to Steve Goldstein at

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