U.S. stocks on Thursday looked set to build on a strong recovery in the previous session as fears about a trade war between the United States and China cooled on signs that the two countries were open to negotiations on tariffs.
Technology stocks, which have taken a beating in the past three weeks, were higher in premarket trading.
Facebook, Amazon, Alphabet, Netflix – collectively known as the “FANG” group – were up between 1 percent and 3 percent.
The Dow Jones Industrial Average dropped about 500 points on Wednesday after a proposed U.S. tariffs on $50 billion of Chinese goods prompted swift retaliation from Beijing. China hit back with equal measure on U.S. goods such as soybeans, autos, chemicals and some types of aircraft.
But the sentiment reversed after President Donald Trump’s top economic adviser Larry Kudlow said the administration was involved in a “negotiation” with China rather than a trade war.
Also, the effective date of China’s move depended on when the U.S. action took effect, providing room for maneuver.
At 7:10 a.m. ET, Dow e-minis 1YMc1 were up 35 points, or 0.14 percent, with 57,520 contracts changing hands.
S&P 500 e-minis ESc1 were up 9 points, or 0.34 percent, with 184,279 contracts traded.
Nasdaq 100 e-minis NQc1 were up 41 points, or 0.62 percent, on volume of 66,231 contracts.
Facebook rose 2.5 percent after Chief Executive Mark Zuckerberg said the company had not seen “any meaningful impact” on usage or ad sales since the scandal.
Wells Fargo rose 1 percent after UBS upgraded the stock to “buy” from “neutral”.
Advanced Micro Devices jumped 2.8 percent after Stifel upgraded to “buy”, while Micron Technology fell 0.9 percent after UBS started with a “sell” rating.