Stock futures turn positive on report US and China are planning for a delay of December tariffs

FAN Editor

U.S. stock index futures rebounded on Tuesday after The Wall Street Journal reported the U.S. plans to delay the implementation of additional tariffs on Chinese goods.

Around 8:40 a.m. ET, Dow Jones Industrial Average futures were up 47 points, indicating a gain of 29 points at the open. S&P 500 and Nasdaq 100 futures also pointed to a slightly higher open. 

The additional levies were set to kick in on Dec. 15. The Journal’s report added U.S. negotiators have asked Chinese officials to commit to some agricultural purchases up front before moving forward with a deal. Meanwhile, China wants its agricultural purchases to be proportional with the amount of tariffs the U.S. rolls back.

Chinese President Xi Jinping (R) and US President Donald Trump at the Great Hall of the People in Beijing on November 9, 2017.

Nicholas Asfouri | AFP | Getty Images

The U.S. is also reportedly pushing for a quarterly review of the promised purchases. The world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

Dow futures were down more than 100 points earlier in the day after the South China Morning Post said China and the U.S. are unlikely to reach a trade deal this week. 

That report said chances of a deal on that front are falling as the U.S. focuses on finalizing a trade deal with Mexico and Canada. Sources told CNBC on Monday that House Democrats and the Trump administration are close to a tentative deal that would replace North American Free Trade Agreement. 

Trade bellwethers Apple and Boeing rose 0.6% and 0.1%, respectively, erasing earlier losses.

Investors will also closely monitor the Federal Reserve as the central bank kicks off its last two-day monetary policy meeting of the year. The Fed is expected to hold rates steady.

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