By Arjun Panchadar
(Reuters) – Wall Street is expected to open for the first time in three sessions on Wednesday, as latest media reports suggest hope that high-level trade talks between the US and China would progress after an early start of hectic week.
Companies with a high exposure to China have grown in pre-market trading. Apple Inc. grew 1.1%, while chip makers Nvidia Corp., Intel Corp. and Advanced Micro Devices Inc. gained about 1.5% each.
China was still willing to accept a partial trade deal with the United States, Bloomberg said, despite including the best Chinese startups of artificial intelligence in a blacklist of exchanges.
Meanwhile, the Financial Times said Beijing is proposing to increase its annual purchases of US agricultural products.
US and Chinese officials began trade talks in Washington on Monday. High level discussions were scheduled to start on Thursday.
"We expect that an interim agreement will emerge from these meetings," said Peter Cardillo, chief economist of markets at Spartan Capital Securities in New York. "Investors certainly seem more optimistic than they did two days ago."
Chinese stocks listed in the US rose after falling in the previous session. Alibaba Group Holding Ltd., JD.com Inc. and Baidu Inc. recorded an increase of between 1.5% and 1.7%.
The escalating trade tensions, the intensification of efforts to oust President Donald Trump and the signs of slowing economic growth shook the stock markets in October. The S & P 500 and Dow Jones indices have lost 3% since the end of September.
A sharp contraction in manufacturing data in the United States, as well as a dismal reading of corporate activity last week, bode well for a third interest rate cut by the Federal Reserve this year.
Fed Chairman Jerome Powell said on Tuesday that he was open to further rate cuts, repeating that the central bank would act "as it should" in an economy that he said was likely to continue. develop.
Investors are now focusing on the third quarter earnings season, which begins next week with the release of the US bank report.
Analysts expect the worst quarterly performance since 2016, the profits of companies of the S & P 500 to fall by nearly 3% over the previous year, based on Refinitiv's IBES data.
At 8:37, ET, the Dow Dow Jones electronic mini was up 174 points, or 0.67%. The S & P 500 electronic mini was up 23.5 points, or 0.81%, and the Nasdaq 100, 67.5 points, or 0.89%.
Johnson & Johnson dropped 2% after a Philadelphia jury said the company was to pay $ 8 billion in punitive damages to a man for failing to prevent young men using his antipsychotic, Risperdal, to develop the breasts.
(Report by Arjun Panchadar and Shreyashi Sanyal in Bengaluru, edited by Shounak Dasgupta)