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China is still open to agreeing to a partial trade deal with the
United States, Bloomberg reported, despite the inclusion of top
Chinese artificial intelligence startups in a trade blacklist.
Separately, the Financial Times reported Beijing was offering to
increase its annual purchases of U.S. agricultural products.
Trade-sensitive chipmakers rose premarket. Nvidia Corp <NVDA.O>,
Intel Corp <INTC.O> and Advanced Micro Devices Inc <AMD.O>
gained 1.5%, while Apple Inc <AAPL.O> was up 1.2%.
The reports offered some relief to investors after a turbulent
start to October as a result of escalating trade tensions,
intensifying efforts to impeach President Donald Trump and signs
of slowing economic growth.
Bets of a third interest rate cut by the Federal Reserve have
surged since last week after data showed a sharp contraction in
U.S. manufacturing and a dismal reading on business activity.
On Tuesday, Fed Chair Jerome Powell flagged openness to further
rate cuts, repeating that the central bank will act "as
appropriate" amid an economy that he said was likely to continue
to expand.
Investors are now focused on the third-quarter earnings season,
with analysts expecting the worst quarterly profit performance
since 2016.
Earnings for S&P 500 companies are forecast to fall nearly 3%
from a year earlier, based on IBES data from Refinitiv.
At 7:21 a.m. ET, Dow e-minis <1YMcv1> were up 205 points, or
0.78%. S&P 500 e-minis <EScv1> were up 26.5 points, or 0.92% and
Nasdaq 100 e-minis <NQcv1> were up 76.75 points, or 1.01%.
Johnson & Johnson <JNJ.N> fell 2.2% after a Philadelphia jury
said the company must pay $8 billion to a man over his claims
that it failed to warn that young men using its antipsychotic
drug Risperdal could grow breasts.
PayPal Holdings Inc <PYPL.O> dropped 1.3% after the digital
money transfer company said it expected a pre-tax loss of $228
million during its third quarter.
U.S.-listed Chinese stocks gained after falling in the previous
session, with Alibaba Group Holding Ltd <BABA.N>, JD.com Inc <JD.O>
and Baidu Inc <BIDU.O> up between 1.5% and 1.7%.
(Reporting by Arjun Panchadar and Shreyashi Sanyal in Bengaluru;
Editing by Shounak Dasgupta)
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