U.S. stock index futures pointed to a sharply higher open on Tuesday amid signs that U.S.-China trade relations could be improving.
At 7:58 a.m. ET, Dow Jones Industrial Average futures were up 226 points, implying a gain of 273.74 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a strong open.
Chinese Vice Premier Liu reportedly said Tuesday that he had been in discussion with U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer, with the aim of de-escalating a global trade war.
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China is also reportedly moving toward cutting tariffs on cars made in the U.S. to 15 percent from the current 40 percent. The proposal has been submitted to the Chinese Cabinet and will be reviewed in the coming days, Bloomberg News reported. President Donald Trump hinted earlier this month that China agreed to lower auto tariffs. Shares of Ford Motor, General Motors and Fiat Chrysler all rose more than 2 percent in the premarket.
Trump later tweeted on Tuesday the administration was having “very productive conversations going on with China,” adding: “Watch for some important announcements.”
Tuesday’s moves come after stocks posted a strong comeback on Monday as shares of tech companies rebounded across the board. The Dow closed 34.31 points higher at 24,423.26, erasing a 507-point drop.
Source: cnbc.com | Original Link