U.S. stock futures in green territory after Trump backs off from Mexico tariffs

US stock index futures are rising today after the US has dropped plans to impose tariffs on Mexican goods while rumors about the multi-billion deal between United Technologies and Raytheon raises the moods.

Mexico has agreed to step up its efforts to stop the flow of illegal immigrants from Central America after US President Donald Trump threatens to impose 5% import duties on all Mexican goods starting Monday if the Latin American country does not commit to doing more for tightening its borders.

Shares of car makers, many of which depend directly on developments around Mexico, jumped into premarket trade, with General Motors gaining 2.1 percent at the moment and Ford Motor jumping 1.4 percent.

United Technologies Corp is up 3.3% after the company agrees to combine its aerospace business with defense contractor Raytheon to build a new $ 121 billion worth of equity. Raytheon shares are up 9.7%.

Also adding to optimism, China's exports finally turned to growth in May despite US tariffs, but imports fell by as much as 3 years ago.

Investors remain optimistic that the Fed will lower interest rates, especially after weaker data on Friday. The majority of Wall Street expects the US central bank to cut interest rates by 50 basis points during the July meeting.

Read more:

• US – Iran – Iraq tension remain the main driver of the stock market today
• How top market players on Wall St think 2020 will look like on financial markets
• Money Flow before the start of the new trading week
• Cincinnati Financial Corporation (CINF.US) -Opportunity for long positions
• Asia stocks gain as Fed signals no rate cuts in 2020