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U.S. stock futures rebounded amid hopes Beijing may ease its COVID-zero policies.
How are stock-index futures trading
-
S&P 500 futures
ES00,
+0.26%
rose 13 points, or 0.3% to 3984 -
Dow Jones Industrial Average futures
YM00,
+0.07%
added 52 points, or 0.2% to 33923 -
Nasdaq 100 futures
NQ00,
+0.46%
climbed 62 points, or 0.5% to 11678
On Monday, the Dow Jones Industrial Average
DJIA,
fell 498 points, or 1.45%, to 33849, the S&P 500
SPX,
declined 62 points, or 1.54%, to 3964, and the Nasdaq Composite
COMP,
dropped 177 points, or 1.58%, to 11050.
What’s driving markets
Risk appetite revived on Tuesday, led by a rebound in Asian stocks, as unrest across China declined and hopes rose that Beijing might ease COVID-19 restrictions.
“Police in China have quashed mass COVID demonstrations for now, helping stocks regain their footing,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Equities, bond yields and industrial commodity prices fell at the start of the week on concerns a wave of anti COVID-lockdown demonstrations would cause a crackdown by Beijing, further hobbling activity in the world’s second biggest economy and slowing global growth.
However, on Tuesday China’s National Health Commission said it would ramp up COVID vaccinations for the elderly, a move that may allow less draconian COVID restrictions to be imposed. The Hang Seng index
HSI,
in Hong Kong, which fell 1.6% on Monday, surged 5.2%.
“The unrest in China duly weighed on equity indices everywhere yesterday, and some moderately hawkish commentary from FOMC members weighed additionally on the U.S. market,” said Ian Williams, strategist at Peel Hunt.
“However, the mood has brightened considerably through the Asian session after a more encouraging update on COVID cases and speculation that some of the local restrictions may be relaxed,” Williams added.
Copper
HG00,
the industrial metal that tends to closely track perceptions of Chinese demand, rose 1.1% to $3.651 a pound, and U.S. crude oil
CL.1,
which on Monday hit a near 11-month low, climbed 2.1% to $78.82 a barrel ahead of the OPEC+ meeting this weekend.
U.S. economic updates set for release on Tuesday include the S&P Case-Shiller U.S. home price index and the FHFA home price index, both covering September and both due at 9 a.m. Eastern. The consumer confidence index for November will be published at 10 a.m..
