Major US equity indices opened with strong gains on the first trading day of the week and were supported by upbeat news on the trade front.
The US and Canada reached a last-minute trade deal on the North American Free Trade Agreement on Sunday night and the deal was renamed the United States-Mexico-Canada Agreement (USMCA).
The news helped offset some of the uncertainties surrounding trade policies, which had been one of the key factors weighing on the markets over the past few months.
Investors, however, persistently shrugged off those concerns and prefered to rather take cues from incoming positive economic data and corporate earnings.
Hence, this week’s key focus will be on the keenly watched US monthly jobs report, due for release on Friday, which should provide some short-term impetus ahead of the third quarter results season.
During the opening hour of trade, the Dow Jones Industrial Average rallied over 200-points to 26,665 and the broader S&P 500 Index climbed nearly 20-points to 2,934. Meanwhile, tech-heavy Nasdaq Composite Index added around 53-points and jumped back to the 8,100 round figure mark.
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