Dow Jones Industrial Average futures were higher on Wednesday morning after the three major averages fell for a second consecutive day.
Futures tied to the Dow added 89 points, or 0.27%. S&P 500 futures gained 0.2% and Nasdaq 100 futures were flat.
In regular hours trading, House Speaker Nancy Pelosi’s controversial visit to Taiwan weighed on investors, who worried it would further strain already tense U.S.-China relations. China had spent weeks warning her not to make the trip. Markets fell further after three Federal Reserve presidents hinted that further rate hikes would be necessary to combat high inflation.
“Despite the fact most of today’s attention is still riveted on the Federal Reserve and its ongoing fight to bring inflation under control, many economic policies have already embarked on a new easing cycle,” said the Leuthold Group’s Jim Paulsen. “The prospect of lower inflation is not only helping to usher in a new easing cycle but is apt to stoke a private-sector confidence revival that has untapped potential.”
Traders are also anticipating another batch of second quarter earnings. CVS, Regeneron, Under Armour and Moderna will report before the bell Wednesday.
In economic data, investors this week are awaiting mortgage demand numbers and PMI data out Wednesday.