Market sentiment is largely driven by expectations that the United States and China will pause their trade war. The leaders of both countries are meeting later this week, on the sidelines of a G-20 summit in Japan.said Wednesday that the meeting could lead to a trade deal but warned that he was prepared to impose tariffs on virtually all remaining Chinese imports if talks failed once again.
The South China Morning Post, citing unnamed sources, reported overnight that officials from Washington and Beijing had tentatively agreed to resume talks aimed at resolving the dispute. The report could not be independently verified by CNBC. An agreement between Trump and Xi at the G-20 summit in Japan would avert the next round of tariffs on additional $300 billion worth of Chinese imports.
On the data front, a third reading of first-quarter GDP , GDP prices and the latest jobless claims figures will be released at around 8:30 a.m. ET. Pending home sales will also be released later in the trading day. Meanwhile, the Treasury is due to auction $40 billion in four-week bills; $35 billion in eight-week bills and $32 billion in seven-year notes on Thursday.