Dow futures pop 150 points after US eases trade restrictions on Huawei

Ed Moya MarketPulse

U.S. stock index futures were higher Tuesday morning, as market participants continue to monitor trade developments between the world’s two largest economies.

At around 6:20 a.m. ET, Dow futures indicated a positive open of about 150 points. Futures on the S&P and Nasdaq were both seen higher, as well.

On Monday, the U.S. government temporarily eased some trade restrictions imposed on China’s Huawei Technologies last week. The move sought to minimize disruption for the telecom company’s customers around the world.

The U.S. Commerce Department said it would allow Huawei to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets until August 19.

The temporary easing of trade restrictions won some respite with market participants ahead of Tuesday’s opening bell. However, an increasingly fraught atmosphere between Washington and Beijing has continued to keep financial markets on edge, with investors abandoning any hopes of an early resolution to the protracted trade dispute.

On the data front, the Philadelphia Fed non-manufacturing survey for May is set to come out at around 8:30 a.m. ET, followed by existing home sales figures for April at around 10 a.m. ET.

In corporate news, Home Depot, AutoZone, and TJX Cos.are among some of the companies expected to release their latest quarterly results before the opening bell.

Nordstrom, Toll Brothers, and Pure Storage are all set to report their latest figures after market close.

Author

Ed Moya

MarketPulse

With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa.

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