By Investors Hub
The major US index futures are pointing to a higher opening on Wednesday, with stocks likely to add to the modest gains posted in the previous session.
The markets are likely to benefit from news that President Donald Trump’s plan to crack down on Chinese investments in the U.S. is less harsh than feared.
Administration officials told reporters Trump wants to strengthen the Committee on Foreign Investment in the U.S. to prevent foreign companies from violating intellectual-property rights of American companies.
Reports earlier this week suggested Trump intended to use the International Emergency Economic Powers Act of 1977 to limit Chinese investment in the U.S.
Following the sell-off seen on Monday, stocks saw modest strength during trading on Tuesday. The major averages all moved to the upside, although buying interest remained relatively subdued.
The major averages ended the day in positive territory but off their highs of the session. The Dow inched up 30.30 points or 0.1 percent to 24,283.11, the Nasdaq rose 29.62 points or 0.4 percent to 7,561.63 and the S&P 500 edged up 5.99 points or 0.2 percent to 2,723.06.
Bargain hunting contributed to the strength on Wall Street, but traders seemed reluctant to pick up stocks amid lingering trade war concerns.
On the U.S. economic front, the Conference Board released a report showing an unexpected decrease in consumer confidence in the month of June.
The Conference Board said its consumer confidence index fell to 126.4 in June from a revised 128.8 in May. Economists had expected the index to inch up to 128.1 from the 128.0 originally reported for the previous month.
Adedapo Adesanya