US pre-open: Futures point to early gains following trade news
US futures had stocks opening higher on Wednesday as reports circulated that a trade deal between the US and China could be closer than previously thought.
As of 1230 GMT, Dow Jones futures were up 0.51%, while S&P 500 and Nasdaq Composite futures were ahead 0.46% and 0.61%, respectively.
The Dow closed 280.23 points lower on Tuesday following comments from Donald Trump at Nato's 70th-anniversary event in London.
However, futures turned positive after Bloomberg reported that the two countries were moving closer to agreeing on the amount of tariffs that will be rolled back in their so-called "phase one" trade deal.
Oanda's Craig Elam said: "Stock markets are back in the green on Wednesday, following a woeful start to the week which came as Donald Trump cast doubts on a pre-election trade deal with China.
"It still baffles me that investors hang on every Trump statement and tweet. His trade deal optimism changes on a near-daily basis and yet, investors are very sensitive to it. It's probably a reflection of the relative lack of other talking points."
Traders will also be keeping an eye on meetings between Donald Trump and other NATO leaders in London after France and the European Union promised to retaliate against potential US tariffs on French goods.
Washington's decision came shortly after France introduced a digital services tax, which the US claimed "unfairly" treated US tech firms. The UK also has plans to impose digital taxes. Commerce Secretary Wilbur Ross also said the Trump administration had not ruled out imposing tariffs on imported European cars.
On the data front, ADP's private-sector payrolls report will be out at 1315 GMT, followed by the ISM composite and services PMIs at 1445 GMT and November's non-manufacturing data from ISM at 1500 GMT.
Federal Reserve vice chair for supervision Randall Quarles will speak on regulation in Congress at 1530 GMT.
In corporate news, Campbell Soup and Slack will both report earnings on Wednesday.