WASHINGTON, D.C. – The US stock futures were showing slightly optimistic gains early on Wednesday.
At about 2:30 am E.T., three of the major indexes in the US were slightly higher with the Dow Jones futures tracking about 4 points increase, suggesting an optimistic open for Wednesday with expected 37 points. Nasdaq and S&P 500 futures were also marginally higher in the early trading session.
The focus of the stock market is largely towards the new developments in the trade negotiations between the US and China. Most of the market rose marginally early this week after the statement from US President Trump, suggesting that negotiators from both countries are getting near towards reaching phase one of the trade deal.
Market players were more upbeat after the positive comments from the president. The market gained even more momentum during the news about the phone call between the government officials from two of the biggest economies in the world on Tuesday, still regarding trade negotiations. Both trade negotiators from the US and China agreed to continue working on their remaining issues. Beijing and Washington have enforced tariffs on each other’s goods since 2018, negatively affecting the market sentiment and the global market in general.
With the increasingly positive market sentiments, the major averages in wall Street were pushed higher, powering it up to reach record highs during the previous trading session.
On the data front, investors are waiting for the effect of the latest weekly jobless claims on the market, which is expected to be released this morning. Further, the second reading of the correct gross domestic product for the third quarter and the durable goods data for October will also be released at the same time.
The pending home sales and personal income numbers for October and the Chicago Purchasing Managers’ Index (PMI) for November will also follow as it was set to be published later this trading session.
The Summary of Commentary on Current Economic Conditions from the Federal Reserve, or what is also called the Beige Book, is also expected to be published at around two p.m. on Wednesday. The market is waiting on that as well as it is considered one of the important indicators for one of the largest economies in the world. The Fed’s views on the monetary policy stance might also affect market sentiments.
On the other hand, shares in Asia were mixed during the trading session as market layers continue to look for more concrete developments on the long-standing US-China trade negotiations, especially with the new tariff increase looming over.