U.S. stock futures rose on Tuesday as concerns over unrest in China and its Covid protocols appeared to ease.
S&P 500 futures rose 0.2%, while Nasdaq 100 futures rose 0.4%. Futures tied to the Dow Jones Industrial Average traded up 7 points.
Overnight, a Chinese official told reporters that 65.8% of the population “over 80 years old” had received booster shots. On top of that, the government reported the first drop in Covid infection rates in mainland China in more than a week. Stocks in Hong Kong and Shanghai rose overnight.
The news came a day after growing frustration in mainland China over the country’s zero-Covid policy weighed on global markets. On Monday, West Texas Intermediate crude futures fell to their lowest point since December.
Trivariate Research’s Adam Parker on CNBC’s “Closing Bell: Overtime.”
“I think people may have an excuse to collect the little profit they made in the quarter because they are worried about the slowdown in the Chinese economy,” he added.
The Dow Jones Industrial Average fell 497.57 points, or 1.45%, on Monday. The S&P 500 fell 1.54% and the Nasdaq Composite closed down 1.58%.
On the economic front, traders will focus on September data on the S&P CoreLogic Case-Shiller home price index due before the bell on Tuesday. The report will give investors insight into how higher interest rates are affecting the housing market. Home prices rose about 13% last month from a year earlier.
Meanwhile, the latest consumer sentiment index is due at 10:00AM ET.Wall Street is also looking ahead to the latest corporate earnings Hewlett Packard Enterprise After the bell on Tuesday.
Federal Reserve Chairman Jerome Powell is scheduled to speak on fiscal and monetary policy at the Brookings Institution’s Hutchins Center on Wednesday. Investors will be listening for insights on the central bank’s fight against inflation.