US. Stock index futures pointed to a significantly higher start on Wall Street after Beijing indicated that it was in no hurry to respond to the recent Washington-imposed tariff round.
What are the main benchmarks?
Futures on the Dow Jones Industrial Average
YMU19, + 0.99%
rose 266 points, or 1%, to 26,303, while S & P 500 futures
increased 27.7 points or 1% to 2,917.5. Nasdaq 100 futures
NQU19, + 1.16%
increased by 91 points, or 1.2%, to 7,689.75.
Equities are expected to follow on Wednesday after the rebound
DJIA, + 1.00%
surged 258.20 points or 1%, closing at 26,036.10. The S & P 500
SPX, + 0.65%
improved 18.78 points, or 0.7%, ending at 2,887.94. The Nasdaq composite
COMP, + 0.38%
closed at 7,856.88, an increase of 29.94 points or 0.4%.
After two remaining sessions in August, the Dow and S & P 500 both declined 3.1% month-to-month, while the Nasdaq fell 3.9%. All three indices remain higher for the year, with the S & P 500 down 4.6% from its all-time high at the end of July, the Dow down 4.8% from its record-breaking close, and the Nasdaq down 5.7% from its peak  What drives the market?
News quoted a spokesman for the Chinese Department of Commerce saying the country would not respond immediately to the latest round of tariff increases President Donald Trump announced on Friday. These increases came after Beijing announced a round of retaliatory tariffs.
The spokesman, Gao Feng, said: "The issue that should now be discussed is to remove the new tariffs to prevent escalation." Meeting of the commercial negotiators next month.
"The largely hopeful tones from the update from China have raised market sentiment and sparked a buy this morning," said David Madden, market analyst at CMC Markets UK, in a note. "Relations between the US and China have been volatile lately, but for the moment it seems that things are going in the right direction, and this has brought some traders back to the market."
Investors also analyzed a number of economic reports This included a revision of GDP growth in the second quarter, which showed US economic growth of 2% per annum instead of the previously reported 2.1%. MarketWatch surveyed economists had expected growth of 1.9%. The revised figures also showed that the US consumer plays an even bigger role in economic growth than before, as private consumption represented 3.1 percentage points of growth, compared to the originally reported value of 2.9.
During the week ending Aug. 24, jobless claims rose 4,000 to seasonally adjusted 215,000, slightly above the economist's expectations of 214,000 per MarketWatch survey. Shares traded in sometimes volatile trading in August, as the trade war between the US and China escalated with tariff escalation and rhetoric on both sides, blamed for growing concerns around the world has fueled economic prospects and fears of a possible recession in the US.
Analysts also pointed to the timeline as a reason for higher equity prices in recent days as investors rebalanced their portfolios towards September. "There are many signs of squaring monthly results as many of the worst-performing sectors outperformed since the beginning of the month, despite the absence of any discernible positive catalyst," Tom Essaye, president of the Sevens Report, wrote to customers on a Thursday note.
The commodity trade deficit in July has dropped from $ 74.2 billion in the previous month to $ 72.3 billion, which is below the $ 75 billion expected by market surveyed economists. At 10:00 am, a pending home sales index is due in July.
Which stocks are in focus?
Shares of Best Buy Co. Inc .
BBY, + 1.74%
fell by 6.4% in the run-up after the retailer reported second-quarter sales, which fell short of analysts' expectations, even though it forecasts earnings per share outperformed.
Dollar General Corp. .
DG, + 1.64%
saw premarket trading rise 8.1%, after the second-quarter discounters slightly surpassed analyst estimates for sales and earnings, while maintaining full-year prospects 2019 had raised.  Tech Data Corp.
TECD, + 1.06%
shares rose 10% ahead of schedule after reporting third quarter results.
Stocks of Dollar Tree Inc .
DLTR, + 2.95%
rose 3.2% before trading after the retailer exceeded second-quarter revenue estimates, but lagged behind earnings expectations and issued full-year earnings guidance, the analysts were forecasting.
How are other markets acting?
The yield on the 10-year US Treasury note
TMUBMUSD10Y, + 0.22%
rose 2.6 basis points to 1.49%.
In the commodity markets the crude oil price
CLV19, + 0.68%
surged 0.8% to just over $ 56 a barrel, while the gold price
GCZ19, + 0.21%
remained unchanged at approximately $ 1549 per ounce. The value of the US dollar rose 0.1% according to the dollar index
DXY, + 0.04% .
In Asia, stocks traded mostly lower overnight; the China CSI 300
fell 0.3%, while the Nikkei 225
lost 0.1%. Hong Kong's Hang Seng Index
HSI, + 0.34% ,
Meanwhile, rose 0.3%.
European equities recovered with the Stoxx Europe 600
SXXP, + 0.95%