Around 6 a.m. ET, Dow futures indicated an implied open of more than 280 points, while futures in the S&P 500 and Nasdaq also pointed higher.
Stock futures turned higher in overnight trading after Reuters said a Chinese TV media outlet had reported that a research team at Zhejiang University had found an effective drug to treat people with the new coronavirus. The news agency, citing traders, suggested this was a reason for the move higher in stocks.
CNBC has not verified the media reports.
Markets remain attuned to the coronavirus outbreak as confirmed cases in China near 25,000, claiming the lives of 490 people. U.S. President Donald Trump said during Tuesday’s State of the Union address that the U.S. is “working closely” with the Chinese government to contain the virus.
Stocks rallied on Tuesday as the market recovered from a huge sell-off on Friday, with the Dow closing 407.82 points higher. Corporate earnings remain in focus, with a number of companies weighing the impact of the coronavirus on forecasts.
Disney on Tuesday topped first-quarter earnings expectations on both the top and bottom lines, but warned of a $175 million hit to its theme parks as a result of the coronavirus outbreak.
Meanwhile, Ford shares slid on Tuesday after the carmaker posted a fourth-quarter loss and disappointing 2020 guidance, warning of virus-related manufacturing shutdowns.
Shares of Nike were also under pressure after the company said it has closed half of its stores in China, saying it will have a “material impact” on its operations across the country.
General Motors, GlaxoSmithKline, and Merck are among those reporting earnings before the opening bell on Wednesday, while Qualcomm and Fox Corp. are set to report after the close of trade.
On the data front, ADP private payrolls numbers for January are due at 8:15 a.m. ET, before December international trade numbers at 8:30 a.m. ET. Final January services PMI (Purchasing Managers’ Index) readings are expected at 9:45 a.m. ET, followed by ISM non-manufacturing data at 10 a.m.