U.S. stock index futures rose on Tuesday, adding to Wall Street’s sharp rebound on Monday, as fears of a trade war between the United States and China eased.
All three major U.S. indexes ended up more than 2 percent on Monday following reports that the United States and China were willing to renegotiate tariffs and trade imbalances.
Top Trump administration officials are now asking China to cut tariffs on imported cars, allow foreign majority ownership of financial services firms and buy more U.S.-made semiconductors to avoid tariffs and a potential trade war.
White House trade adviser Peter Navarro confirmed that Trump has asked Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer to try to resolve trade differences with China.
“We expect yesterday’s rally to extend itself as fading fears over a full-blown trade war is begging to restore confidence,” said Peter Cardillo, chief market economist at First Standard Financial in New York.
“It’s coming at an opportune time as we approach the end of the quarter window dressing.”
At 9:02 a.m. ET, Dow e-minis 1YMc1 were up 98 points, S&P 500 e-minis ESc1 rose 8.5 points and Nasdaq 100 e-minis NQc1 gained 41 points.
Among the top 25 most active stocks in premarket trading, eight were in the red, with Facebook reversing course to trade down 1 percent. The stock has been hammered for days following the outcry over the social media company’s handling of users’ data.
The company now faces an investigation by the U.S. Federal Trade Commission on how it allowed data of 50 million users get into the hands of a political consultancy.
Red Hat shares were up 6.2 percent after the software developer reported better-than-expected quarterly results on strong demand for its hybrid cloud products.
Kinder Morgan shares were up 1.2 percent after Citigroup upgraded the stock to “buy”.