The major U.S. index futures are pointing to a higher opening on Wednesday following the notable pullback seen over the course of the three previous sessions.
Traders may go bargain hunting after a report from Bloomberg News indicated the U.S. and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal.
Citing people familiar with the talks, Bloomberg said U.S. negotiators expect a phase one deal to be completed before U.S. tariffs are set to rise on December 15.
The people told Bloomberg outstanding issues in the talks include how to guarantee China’s purchases of U.S. agricultural goods and exactly which tariffs to roll back.
Bloomberg said the people downplayed President Donald Trump’s recent remarks suggesting he would like to delay completing an agreement until after the 2020 elections, noting the president was speaking off the cuff.
Nonetheless, the early buying interest may be partly offset by a report from payroll processor ADP showing much weaker than expected private sector job growth in the month of November.
Stocks regained ground over the course of the trading day on Tuesday after falling sharply early in the session but still closed firmly in the red. The major averages closed lower for the third straight session, pulling back further off their record highs.
After hitting its lowest intraday level in a month, the Dow pared its losses but still tumbled 280.23 points or 1 percent to 27,502.81. The Nasdaq fell 47.34 points or 0.6 percent to 8,520.64 and the S&P 500 slid 20.67 points or 0.7 percent to 3,093.20.
The early sell-off on Wall Street came amid renewed trade concerns after President Donald Trump suggested he might prefer to wait until after the 2020 elections to strike a trade deal with