At around 05:20 a.m. ET, Dow futures rose 242 points, indicating a positive open of more than 241 points. Futures on the S&P and Nasdaq were both higher.
The moves in pre-market trade come after a report showed growth in China’s services sector had expanded at its fastest rate in three months in August, despite broader economic headwinds.
The Caixin/Markit Services Purchasing Managers’ Index (PMI) came in at 52.1 in August — its highest reading since May. The 50-mark in PMI readings separates growth and contraction.
At the start of the month, the U.S. and China imposed new tariffs on one another’s goods. It marked the latest escalation in a long-running trade war between the world’s two largest economies.
Sticking in Asia, Hong Kong leader Carrie Lam is expected to announce the formal withdrawal of a proposed extradition bill that has sparked months of protests in the Chinese-ruled city, Reuters reported, citing the South China Morning Post and other sources. The Hang Seng index in Hong Kong soared around 4% on the news.
It prompted the new prime minister to announce he would immediately push for a snap election.
Sterling has since pared some of its recent losses against the U.S. dollar. The U.K. currency edged up 0.2% to climb above $1.21 Wednesday morning, after falling to its lowest level since October 2016 in the previous session.
In corporate news, American Eagle Outfitters, Navistar and Vera Bradley are among some of the companies scheduled to report earnings before the opening bell.
Copart, Palo Alto Networks and Slack are among the companies set to report their latest quarterly results after market close.