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* Futures up: Dow 1%, S&P 0.93%, Nasdaq 1.23%
By Akanksha Rana
Aug 29 (Reuters) - U.S. stock index futures jumped about 1%
on Thursday as China sounded upbeat about its trade talks with
the United States, calming investors unnerved by the prospect of
a recession.
China's commerce ministry said both sides are discussing the
next round of talks scheduled in September and hoped U.S.
officials could cancel the planned additional tariffs to avoid
an escalation, boosting sentiment and driving global stocks
higher. MKTS/GLOB
Trade-sensitive stocks such as Apple Inc AAPL.O and Boeing (NYSE:BA)
Co BA.N rose more than 1% in premarket trading.
Chipmakers, which draw a large part of their revenue from
China also gained, with Intel Corp INTC.O , Qualcomm Inc
QCOM.O , Advanced Micro Devices Inc AMD.O and Nvidia Corp
NVDA.O up between 0.9% and 2.3%.
The Trump administration on Wednesday made official its
additional 5% tariff on $300 billion in Chinese imports and set
collection dates of Sept. 1 and Dec. 15, prompting several
hundreds of U.S. companies to warn of price hikes. Shares of Best Buy Co Inc (NYSE:BBY) BBY.N , the biggest U.S. consumer
electronics retailer, dropped 5.8%, after forecasting annual
same-store sales below analysts' estimates, citing the new U.S.
tariffs set to be imposed on Chinese imports. Wall Street's main indexes are on course to record their
worst monthly performance since a selloff in May, spurred by
worries that tit-for-tat tariffs will drive the global economy
into a recession. Those fears came to the fore after the U.S.
yield curve inversion deepened earlier this week to levels not
seen since 2007. US/
Data from the U.S. Commerce Department in its second
estimate, due at 08:30 a.m. ET (1230 GMT) is likely to show that
gross domestic product increased 2% in the second quarter, after
showing 2.1% growth in its earlier estimate.
Separately, data from the Labor Department, which is also
due at 08:30 a.m. ET, is likely to show that initial jobless
claims rose to 215,000 from 209,000 for the week ended Aug. 24.
At 7:11 a.m. ET, Dow e-minis 1YMcv1 were up 260 points, or
1%. S&P 500 e-minis EScv1 were up 27 points, or 0.93% and
Nasdaq 100 e-minis NQcv1 were up 93.25 points, or 1.23%.
Among other stocks, Box Inc BOX.N tumbled 10% premarket as
investors were disappointed after the cloud content management
platform provider reiterated its full-year earnings outlook.
Dollar General Corp (NYSE:DG) DG.N jumped 6.4% after the discount
retailer beat analysts' estimates for quarterly same-store
sales.