5 things to know before the stock market opens Thursday

U.S. stock futures were pointing to a higher open on Wall Street on Thursday, the morning after President Donald Trump tweeted a “good will” delay in some of his China tariffs. The Dow Jones Industrial Average extended its winning streak to six sessions, closing on Wednesday back above 27,000. Bond yields were lower ahead of Thursday’s meeting of the European Central Bank, which is expected to unveil a huge new stimulus package. The Federal Reserve is also seen easing monetary policy on Wednesday, with its second quarter-point interest rate cut of the year.

In addition to the ECB, the latest on U.S. consumer prices could figure into the Fed’s decision on rates next week. The U.S. government releases its August consumer price index at 8:30 a.m. ET. It’s expected to show a subdued rise in inflation, with CPI up 0.1%, or 1.8% year over year, according to Refinitiv. Core CPI inflation is expected to rise by 0.2%, or 2.3% year over year. On Wednesday, the producer price report showed an unexpected rise in August.

China’s state media says Beijing is welcoming Trump’s decision to delay the planned tariff rate increase from 25% to 30% on $250 billion of Chinese goods by two weeks, to Oct. 15. Trump tweeted that the postponement came “at the request of the Vice Premier of China, Liu He and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary” on the originally planned tariff date of Oct. 1. 

Earlier Wednesday, China announced plans to exempt 16 types of U.S. products from additional tariffs for a year starting Tuesday. The overtures from both sides come ahead high-level talks aimed at ending the yearlong U.S.-China trade war next month.

U.S. oil prices were lower Thursday morning, adding to Wednesday’s nearly 3% plunge after a report that Trump weighed easing sanctions on Iran to help secure a meeting with Iranian President Hassan Rouhani later this month. Relaxing sanctions on Iran could lead a flood of crude supply at a time of lingering worries about global demand. Recently departed national security advisor John Bolton argued against the move, according to Bloomberg. Treasury Secretary Steven Mnuchin is said to have voiced support in a White House meeting on Monday.

Trump has ruled out cutting capital gains taxes, for now. The White House said the decision came after the president met Wednesday with advisors to talk about possible tax policy changes, including one proposal he appeared to shy away from weeks ago. Last month, Trump said that indexing capital gains taxes to inflation could be perceived as elitist. The plan could lower taxes investors pay on profits from selling assets.