Fred Imbert, Elliot Smith
As of 8:30 a.m. ET, Dow Jones Industrial Average futures were trading 82 points higher and pointed to gain of more than 135 points at the open, while S&P 500 and Nasdaq 100 futures both looked set to open fractionally higher.
Sentiment got a lift again on Tuesday after China announced measures aimed at boosting consumption, including potentially removing car-buying restrictions. Auto stocks rose broadly on the news.
Ford Motor and General Motors gained 0.6% and 0.4%, respectively. Fiat Chrysler and Ferrari rose more than 1% each on light volume trading.
Comments from two of the world’s two largest economies on Monday suggested a potential rapprochement following an escalation of trade tensions over the weekend.
Following the Group of Seven (G-7) summit in Biarritz, France on Monday, President Donald Trump predicted a trade deal with China, citing economic pressure on Beijing, while China also called for a resolution to the ongoing dispute.
Stocks rallied on Trump’s comments. The Dow, S&P 500 and Nasdaq Composite all rose more than 1% as semiconductor stocks and Apple climbed.
However, Trump’s claims at the G-7 that China called top U.S. trade negotiators to reignite discussions has been called into question by Hu Xijin, editor-in-chief of the Global Times, who said in a tweet that negotiators from both countries did not talk over the phone. Hu’s tabloid is run by the People’s Daily, the official newspaper of China’s ruling Communist Party.