Stock-index futures pointed to a higher start on Tuesday, with the Dow Jones Industrial Average looking to extend its winning streak to seven days, after Chinese authorities appeared to back new measures to support the economy.
rose 122 points, or 0.5%, to 26,208, while S&P 500 futures
were up 13.8 points, or 0.5%, at 2,903. Nasdaq-100 futures
gained 48.5 points, or 0.6%, to 7,564.
On Monday, the Dow
rose 78.74 points, or 0.3% to end at 26,062.68. The blue-chip gauge’s six-day winning streak is the longest since an eight-day run that ended on May 14, 2018, according to Dow Jones Market Data.
The S&P 500
rose 13.39 points, or 0.5%, to close at 2,886.73 on Monday, while the Nasdaq Composite
advanced 81.07 points, or 1.1%, to finish at 7,823.17.
What’s driving the market?
Wall Street appeared poised to join a global equity surge that analysts attributed to a decision by Chinese authorities to back special-purpose bond issuances by local governments. The move is an effort to accelerate financing of major projects through the bond issuances, which are used largely for infrastructure investment, the People’s Bank of China said in a joint statement with other government agencies, The Wall Street Journal (paywall) reported.
Investors, meanwhile, appeared to ignore a continued rumble of hostile rhetoric from the U.S. and China over trade. China’s foreign ministry on Tuesday said it would respond firmly if the U.S. insisted on escalating trade tensions, Reuters reported, after U.S. President Donald Trump on Monday said further tariffs on Chinese imports would take effect if the two countries don’t reach a deal at a meeting of Group of 20 leaders later this month.
What’s on the economic calendar?
The National Federation of Independent Business said its Small Business Optimism Index posted a May reading of 105, up 1.5 points from April. Six components of the index rose, three were unchanged and one declined.
The May producer-price index is due at 8:30 a.m. Eastern.
What are analysts saying?
“Yesterday’s global equity market rally has continued into Tuesday, thanks to Asian stocks being led higher by the prospect of new government stimulus in China,” said Russ Mould, investment director at AJ Bell, in a note.