By Spencer Kimball, CNBC–

  • Trump announced on Friday that he would not impose 5% tariffs on Mexican exports, after Mexico agreed to strengthen immigration enforcement.
  • On Friday, the Dow closed 263.28 points higher at 25,983.94 to post its best week since November on hopes that the Federal Reserve would move to slash interest rates after job numbers came in lower than expected.

Stock futures indicated that the Dow Jones Industrial Average would open more than 100 points higher Monday in the wake of President Donald Trump’s decision to suspend planned tariffs against Mexico.

Trump announced on Friday that he would not impose 5% tariffs on Mexican exports, after Mexico agreed to strengthen immigration enforcement.

On Friday, the Dow closed 263.28 points higher at 25,983.94 to post its best week since November on hopes that the Federal Reserve would move to slash interest rates after job numbers came in lower than expected.

Job creation slowed dramatically with payrolls up just 75,000 in May, far below the consensus forecast of 180,000. It was the second time in four months that payrolls increased by less than 100,000.

Trumps tariff threat against Mexico had rattled markets, which were already facing uncertainty over the escalating trade war between the United States and China

Federal Reserve Chairman Jerome Powell said last week the central bank is “closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion.”