(Reuters) – U.S. stock index futures dipped on Tuesday after retreating from record highs in the previous session, as a Wall Street rally, fueled by optimism around U.S.-China trade progress, fizzled out in the final days of the decade.
FILE PHOTO: Traders work on the floor at the opening bell of the New York Stock Exchange (NYSE) in New York, U.S., December 27, 2019. REUTERS/Bryan R Smith
White House trade adviser Peter Navarro said on Monday the Phase 1 Sino-U.S. trade deal was likely to be signed in the next week, hours after South China Morning Post reported that Chinese Vice Premier Liu He would travel to Washington this week.
After logging healthy gains for most of December, the three major stock indexes shrugged off the comments to post their worst day in over four weeks. The benchmark S&P 500 closed Monday at its lowest level since Dec. 20.
At 7:18 a.m. ET, Dow e-minis 1YMcv1 were down 26 points, or 0.09%. S&P 500 e-minis EScv1 were down 2.5 points, or 0.08% and Nasdaq 100 e-minis NQcv1 were down 10.75 points, or 0.12%.
Trading volumes are expected to remain thin in a week shortened by the New Year’s Day holiday, with few other major updates expected on the trade deal.
Despite Monday’s dip, the S&P 500 is still on track for its best year since 2013 and its best December in nine years, also driven by a loose monetary policy by the Federal Reserve and relatively upbeat economic indicators.
Latest data from China showed manufacturing activity expanded for a second straight month in December.
The data aligns with other early signs of stabilization in the Asian economy, including last week’s figures that showed profits at China’s industrial firms grew at the fastest pace in eight months in November.
At home, consumer confidence data for December is expected at 10 a.m. ET.
Among individual stocks, U.S-listed shares of Tencent Music Entertainment (TME.N) rose 2% after a consortium led by the China-based company agreed to buy a stake in Vivendi’s Universal Music Group.
Reporting by Manas Mishra in Bengaluru