US stock index futures high as hopes for new round of tax overshadowing anxiety
U.S. stock index futures were higher on Monday as hopes for a new round of tax cuts overshadowed anxiety over trade after U.S. President Donald Trump raised the stakes in the Sino-U.S. trade dispute on Friday.
Republicans in the U.S. House of Representatives plan to unveil a fresh round of tax cuts this week, hoping to draw a sharp contrast between themselves and Democrats ahead of the Nov. 6 congressional elections.
"There is definitely a sense that Congress is going to get these tax cuts implemented before the end of this month and the positivity around that could be pushing the markets higher," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
"We will be seeing a relatively strong opening today because the markets are due for a rebound given the negative string we had last week."
A majority of the Dow Jones Industrial Average and S&P 500 components trading premarket were in positive territory. They included the usually trade-sensitive Boeing, whose shares were up 0.42 percent in premarket trading, and Caterpillar, which was up 0.20 percent.
At 7:57 a.m. ET, Dow e-minis were up 90 points, or 0.35 percent. S&P 500 e-minis were up 10.25 points, or 0.36 percent and Nasdaq 100 e-minis were up 39.25 points, or 0.53 percent.
On Friday, Trump said he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $267 billion of goods over and above planned tariffs on $200 billion of Chinese products. China said it will respond if the United States takes any new steps on trade.
Alibaba fell 1.3 percent after the company said Jack Ma will step down as chairman in one year, passing on the reins to a trusted lieutenant, Chief Executive Officer Daniel Zhang.