U.S. stock futures rose on Tuesday as worries about unrest in China and its Covid protocols appeared to ease.
S&P 500 futures rose 0.2%, while Nasdaq 100 futures climbed 0.4%. Futures contracts linked to the Dow Jones Industrial Average rose 7 points.
Overnight, a Chinese official told reporters that 65.8% of people “over 80 years old” had received reminders. In addition to this, the government reported the first drop in Covid infections within Mainland China in over a week. Stocks in Hong Kong and Shanghai rallied overnight.
The news comes a day after growing frustration in mainland China over the country’s zero-Covid policy weighed on markets around the world. On Monday, West Texas Intermediate crude futures briefly fell to their lowest point since last December.
“There’s some real reason to be cautious. The market has rallied a lot this quarter, and there’s concern that things may be slowing down, so I think it’s kind of a balanced risk-reward,” Adam said. Trivariate Research’s Parker Monday on CNBC’s “Closing.” Bell: Overtime.”
“I think there was an excuse with maybe some slowdown fears in China for people to cash in on a bit of profit that they made in the quarter,” he added.
The Dow Jones Industrial Average lost 497.57 points, or 1.45%, on Monday. The S&P 500 slid 1.54%, while the Nasdaq Composite closed down 1.58%.
On the economic front, traders will be watching the September reading of the S&P CoreLogic Case-Shiller Home Price Index due out Tuesday before the bell. The report will give investors insight into how higher interest rates affect the housing market. House prices the previous month jumped around 13% year over year.
Meanwhile, the latest reading on consumer confidence is expected to be released at 10 a.m. ET. Wall Street is also awaiting the latest corporate earnings results from Hewlett Packard Enterprise Tuesday after the bell.
Fed Chairman Jerome Powell is scheduled to speak Wednesday at the Hutchins Center on fiscal and monetary policy at Brookings. Investors will be tuning in for a glimpse of the central bank’s fight against inflation.