© Reuters. Traders work on the floor at the NYSE in New York
By Sruthi Shankar
(Reuters) - U.S. stock index futures indicated gains at the open on Tuesday, as optimistic comments from Washington and Beijing took the edge off market concerns about a further escalation in trade war.
The prospects of global economy being derailed by the United States and China sliding into a fiercer, more protracted dispute had rattled investors on Monday after China announced plans to hit back with tariffs on U.S. goods.
Wall Street witnessed one of its worst selloffs this year in the previous session, with the and the recording their largest percentage drops since Jan. 3 and the tech-heavy Nasdaq logging its worst day in 2019 as investors scoured for safety in low-risk assets.
U.S. President Donald Trump said on Monday he would talk to Chinese President Xi Jinping at G20 Summit in late June, while China said both sides have agreed to keep the talks going, helping inject some calm into markets.[GLOB/MKTS]
"Investors are trying to scoop up bargains. Maybe things have gotten a little bit too far overdone to the downside," said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.
"As long as the two sides are talking, the tariffs itself become background noise."
The recent run of losses has knocked nearly 5% off the S&P 500 since hitting an all-time high on May 1, putting the index on course for the biggest monthly decline since December.
At 8:49 a.m. ET, were up 114 points, or 0.45%. were up 16.75 points, or 0.6% and were up 60.75 points, or 0.83%.
A Labor Department report showed U.S. import prices rose less than expected in April as increases in the cost of petroleum and food were tempered by the largest drop in the price of capital goods in 10 years, suggesting inflation could remain tame for a while.
Data showed import prices increased 0.2% last month, while economists polled by Reuters had forecast a 0.7% rise.
Federal Reserve's New York chief John Williams (NYSE:), a voter in the interest rate setting committee this year, said the recent U.S. tariffs imposed on Chinese goods will boost U.S. inflation and could dampen economic growth.
Apple Inc (NASDAQ:) shares, among the hardest hit on Monday, gained 0.6% in premarket trading, along with a host of chipmakers, including Micron Technology Inc (NASDAQ:), Nvidia Corp and Advanced Micro Devices (NASDAQ:).
Coca-Cola (NYSE:) Co's shares rose 0.7% after Morgan Stanley (NYSE:) upgraded the stock to "overweight", saying higher growth has not been priced into the stock's valuation.
Boeing (NYSE:) Co shares were up 0.8% ahead of April deliveries report, expected later in the day.
Deere & Co fell 1.8% after JP Morgan downgraded shares of the tractor maker to "underweight" from "neutral".
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https://www.investing.com/news/stock-market-news/futures-steady-after-mondays-drastic-selloff-1867406
2019-05-14 13:08:00Z
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