By Sam Meredith, CNBC–
U.S. stock index futures were higher on Tuesday morning, with market participants cautiously optimistic Washington and Beijing could be on the verge of a trade deal.
The moves in pre-market trade come as dozens of officials from the world’s two largest economies continue talks to resolve their ongoing trade dispute. U.S. Commerce Secretary Wilbur Ross told CNBC on Monday that both global powers could reach a settlement “they can live with, and that addresses all the key issues.”
China’s Foreign Ministry previously said Beijing had “good faith” to work with Washington to reach an agreement before a March deadline. However, many analysts remain deeply skeptical about the likelihood of both sides brokering a comprehensive trade deal.
On the data front, investors are likely to monitor the NFIB’s small business optimism index for December at around 06:00 a.m. ET. The latest monthly Job Openings and Labor Turnover Survey (JOLTS) and consumer credit figures for November are expected to be published later in the session.
Meanwhile, President Donald Trump announced plans to deliver a prime-time address to the nation Tuesday evening. The broad-based public appeal is expected to focus on the standoff over his proposed border wall that has shut down large chunks of the federal government.
On Monday, the Dow closed almost 100 points higher, extending a recent recovery on Wall Street. The S&P and Nasdaq also advanced around 1 percent in the previous session.
Risk appetite in financial markets received a significant boost at the end of the previous trading week, after stronger-than-expected U.S. jobs data and dovish comments from Federal Reserve Chairman Jerome Powell.
In a bid to ease market concerns of slowing growth in the world’s largest economy on Friday, Powell said the U.S. central bank would be “patient” and flexible with monetary policy decisions this year.