U.S. stock index futures surged 1% on Tuesday, signaling a recovery for Wall Street from a sharp coronavirus-led pullback last week, with fresh intervention by China’s central bank calming investor nerves.
In a bid to cushion the economic blow of the epidemic, China injected 1.7 trillion yuan via reverse repos on Monday and Tuesday, helping Chinese stocks reverse some losses and lifting the world equity index. The monetary intervention boosted investor sentiment even as several economists cut their forecasts for 2020 global growth as the death toll from the outbreak mounts and business operations in China remain suspended.
Premarket gains on Wall Street were led by technology stocks, with Intel Corp, Apple Inc, and Microsoft Corp climbing between 1.5% and 2.2%. But Alphabet Inc’s shares slipped 3.2% after Google’s advertising business and new data about YouTube and Google Cloud broadly disappointed.
Investors were also eyeing the U.S. Democratic presidential nominating race that got off to a chaotic start on Monday, with officials blaming “inconsistencies” for an indefinite delay in the state’s caucus results.
MacDailyNews Take: Currently in pre-market trading, shares of our favorite fruit company are up $6.82, +2.12%, to $315.48.