U.S. stock index futures signaled a bounce on Tuesday, as China stepped in to steady the yuan and investors sought beaten-down stocks, a day after Wall Street’s main indexes racked up their steepest one-day percentage fall of the year.
The benchmark S&P 500 and Nasdaq lost at least 3% each on Monday, their sixth straight day of losses, as China let the yuan drop sharply in what was seen as a retaliation to President Donald Trump’s threat to slap a new round of tariffs on Chinese imports last week.
U.S. Treasury Department labeled Beijing a currency manipulator late on Monday, crushing any hopes of a swift resolution to the trade war.
“This trade spat is going away no time soon, but we should see central bank easing bets rise globally and that will help limit some of the market carnage over the next couple of weeks,” said Edward Moya, senior market analyst at Oanda in New York.
At 6:45 a.m. ET, Dow e-minis rose 0.85%. S&P 500 e-minis advanced 0.91%, while Nasdaq 100 e-minis were up 80.75 points, or 1.09%.
Shares of technology companies, which have a big exposure to China, were higher in premarket trading.
Apple Inc edged 0.4% after three days of heavy losses, while shares of semiconductor companies – Intel Corp , Advanced Micro Devices Inc and Nvidia Corp – rose between 1.2% and 1.7%.
Industrial bellwethers Boeing Co and Caterpillar Inc rose about 1% each.
The latest streak of losses has pulled the S&P 500 about 6% away from its all-time high hit last month.
Among other stocks, Walt Disney Co was up 1.2%. the company is set to report its third-quarter results after market close.
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Ed Moya
His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies.
Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Prior to OANDA he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news.
Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business, cheddar news, and CoinDesk TV. His views are trusted by the world’s most respected global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Seeking Alpha, The New York Times and The Wall Street Journal.
Ed holds a BA in Economics from Rutgers University.
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