Dow futures rise over 100 points as Ford, other auto makers gain on trade hopes

Dow futures rose over 100 points in premarket trading on Thursday, lifted by gains for auto makers such as Ford Motor Co., amid hopes that a solution could be at hand to ease tensions between the U.S. and at least one trading partner.

What are markets doing?

Dow Jose Industrial Average futures YMU8, +0.59%  put on 131 points, or 0.6%, to 24,293, while S&P 500 futures ESU8, +0.59%  moved up 15.20 points, or 0.6%, to 2,728.50. Nasdaq-100 futures NQU8, +0.64%  added 41.75 points, or 0.6%, to 7,066.50.

Markets were closed Wednesday in observance of the Independence Day holiday. On Tuesday, the Dow DJIA, -0.54%  closed down 132.36 points, or 0.5%, to 24,174.82, while the S&P 500 SPX, -0.49%  ended 0.5% lower, led by financials and tech stocks. The Nasdaq Composite Index COMP, -0.86% dropped 0.9%.

What is driving the market?

Global trade tensions may have taken a positive turn on Thursday, with auto makers climbing after a U.S. official reportedly offered a “zero solution” to car tariffs. Such a deal would see the U.S. stop its threats to impose such duties in exchange for the European Union eliminating its levies.

Fiat Chrysler Automobiles NV FCAU, -1.00%  jumped 4% and Ford Motor Co. F, -0.99%  rose 1% in premarket, after Daimler AG DAI, +3.01%  and BMW AG BMW, +4.37%  jumped over 4%.

A day earlier, reports said the EU may try to broker talks between big auto producing countries to prevent tariffs from being hiked in an all-out trade war.

Read: How will investors know if there is a full-blown trade war? Here’s what Wall Street says

But if there was hope on the European front, trade tensions remained elsewhere. On Friday, the U.S. plans to impose $34 billion worth of duties on Chinese products, and Beijing is expected to implement

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