(Reuters) – U.S. stock futures rose about 1 percent on Tuesday, as signs of progress in trade talks between the United States and China eased jitters over the fragile relations between the two economic giants that have roiled the markets for months.
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 10, 2018. REUTERS/Brendan McDermid/File Photo
Boosting sentiment was a Bloomberg report that China was moving toward cutting its trade-war tariffs on imported U.S.-made cars.
Even after the world’s two biggest economies agreed to a 90-day trade ceasefire on Dec. 1 for negotiations, investors have been skeptical of a resolution following the arrest of a top Huawei Technologies Co Ltd [HWT.UL] executive at U.S. request.
The futures indicate further gains for the market after the S&P 500 snapped a three-day losing streak in Monday’s volatile session during which the benchmark index hit an eight-month low on concerns over global growth and uncertainty over the Brexit deal.
Still, risks to global growth persist and the S&P 500 and the Dow Industrials remain in negative territory for the year, despite Monday’s gain.
A top International Monetary Fund official warned storm clouds were gathering over the global economy and governments and central banks might not be well-equipped to cope.
Shares of Boeing Co, the single largest U.S. exporter to China, rose 2.25 percent premarket, ahead of releasing its plane orders and delivery numbers for November.
Apple Inc, whose dramatic reversal to trade higher helped the market’s pullback on Monday, was up 1.23 percent before the bell.
The rest of the FANG group – Facebook Inc, Amazon.com Inc, Netflix Inc and Google-parent Alphabet Inc – gained between 1 percent and 1.2 percent.
Google Chief Executive Officer Sundar Pichai is set to appear before Congress later in the day.
At 7:17 a.m. ET, Dow e-minis were up 237 points, or 0.97 percent. S&P 500 e-minis were up 23.25 points, or 0.88 percent and Nasdaq 100 e-minis were up 75.75 points, or 1.13 percent.
Among other early movers, Pfizer Inc fell 0.90 percent after JP Morgan moved to sidelines on the drugmaker’s shares.
AT&T Inc shares rose 1.34 percent after Citigroup upgraded the No. 2 U.S. wireless carrier to “buy”.
On the economic front, data published at 8:30 a.m. ET (1330 GMT) by the U.S. Labor Department will likely show producer prices in November remained unchanged from prior month.
However, the more crucial reading of inflation will come from consumer price data due on Wednesday.
Reporting by Medha Singh in Bengaluru; Editing by Sriraj Kalluvila