Dow futures jump as China slowdown fears wane

U.S. stock futures pointed to a rebound on Tuesday, as positive headlines around China alleviated fears of an impending slowdown in the world’s second-largest economy.

As of 3:00 a.m. ET, Dow futures traded 133 points higher, indicating a positive open of 120 points. S&P 500 and Nasdaq futures were also higher.

China’s National Development and Reform Commission (NDRC) said on Tuesday it would aim to achieve “a good start” for the economy in the first quarter, lifting hopes of further economic stimulus.

Separately, Chinese Premier Li Keqiang said that the government was seeking to establish conditions to help meet its economic goals for 2019, Reuters reported, citing Chinese state television.

Wall Street appeared to track the upbeat sentiment in Europe and Asia. Indexes in both continents were mostly higher on the back of hopes that China would introduce more measures to support its weakening economy.

Figures released earlier this week showed that Chinese exports and imports fell sharply in December, while the country’s trade surplus with the U.S. reached a record high.