Stock futures rise after major averages fall on Covid unrest in China

Traders work on the floor of the New York Stock Exchange (NYSE) on September 6, 2022.

Brendan McDermidt | Reuters

US stock futures were higher on Tuesday morning after key averages came under pressure from Covid protests in China, and investors were expecting more economic data and commentary from Federal Reserve chiefs this week.

Dow Jones Industrial Average futures added 72 points, or 0.21%. S&P 500 and Nasdaq 100 futures rose 0.35% and 0.51%, respectively.

The Dow Jones Industrial Average lost 497.57 points, or 1.45%, during the regular session on Monday. The S&P 500 fell 1.54%, while the Nasdaq Composite fell 1.58%.

Growing frustration in mainland China over the country’s zero-Covid policy weighed on markets around the world. On Monday, West Texas Intermediate crude futures fell to their lowest level since last December.

“There are some real reasons to be cautious. The market is very bullish this quarter, and there’s some concern that things are going to slow down, so I think it’s kind of a balanced risk-reward,” Adam Parker of Driveriod Research told CNBC’s “Closing” on Monday. Bell: Overtime.”

“I think there’s an excuse with some China slowdown fears for people to collect a small profit they made in the quarter,” he added.

On the economic front, traders will look to the September reading of the S&P CoreLogic Case-Shiller Home Price Index before hours on Tuesday. The report will give investors a look at how higher interest rates are affecting the housing market. House prices in the previous month Up about 13% year-on-year.

Meanwhile, the latest reading on consumer sentiment is due out at 10 a.m. ET. Wall Street is looking forward to the latest corporate earnings results Hewlett Packard Enterprise Hour after Tuesday.

Federal Reserve Chairman Jerome Powell is scheduled to speak at the Hutchins Center on Fiscal and Monetary Policy in Brookings on Wednesday. Investors will seek insight into the central bank’s fight against inflation.

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