LONDON: U.S. stocks looked poised to step higher at the open Wednesday, with stock futures adding to earlier gains after China unveiled fresh stimulus measures.
S&P 500 futures ESU5, +1.39% were up 26.20 points, or 1.4%, to 1,899, as equities try to halt a punishing six-session skid driven in large part by worries about China.
Dow Jones Industrial Average futures YMU5, +1.30% advanced by 205 points, or 1.3%, to 15,924, while those for the Nasdaq 100 NQU5, +1.19% tacked on 53 points, or 1.3%, to 4,081.50.
On Wednesday after the close of trading in Chinese markets, the People’s Bank of China said it will inject $21.80 billion into the financial system in a new easing effort. That follows the central bank’s interest-rate cut on Tuesday, which initially helped give a lift to the U.S. stock market before its sharp reversal to the downside in the late afternoon. The S&P 500 index SPX, -1.35% ended 1.4% lower and the Dow Jones Industrial Average DJIA, -1.29% settled with a 1.3% loss.
Some strategists were downbeat early Wednesday. While the S&P and Dow “are set to open in the green,” Asian and European stocks have dropped and “it’s unlikely U.S. will go against this trend,” said Nour Al-Hammoury, chief market strategist at ADS Securities, in a note. European equities SXXP, -1.59% were down but off their session lows, while the Shanghai Composite SHCOMP, -1.27% closed lower for a fifth straight day.
Al-Hammoury argued that China’s central bank “has done its job,” and now more action by other central banks is needed in order to “avoid further selling.”
In other trading, oil CLV5, +0.23% and gold GCZ5, -0.31% were little changed, while the dollar DXY, +0.38% dropped against its major rivals.
On the economic front, investors will watch for a July reading on durable-goods orders that’s expected at 8:30 a.m. Eastern. Economists polled by MarketWatch forecast a decline of 0.6%.
