Futures climb as economic recovery hopes outweigh Sino-U.S. tensions

By Medha Singh

(Reuters) – U.S. stock index futures advanced on Wednesday as hopes of an economic recovery eclipsed worries over simmering tensions between the United States and China.

Unprecedented monetary and fiscal stimulus, the easing of lockdowns and optimism about an eventual COVID-19 vaccine have powered a rally, helping the S&P 500 <.spx> end at its highest level since early March on Tuesday.

The benchmark index, however, closed just short of 3,000 points, a key psychological level, after President Donald Trump said the United States would announce before the end of the week its response to China’s planned national security legislation for Hong Kong.

At 6:07 a.m. ET, S&P 500 e-minis were up 1.22% at 3030.5. Dow e-minis were up 354 points, or 1.42% and Nasdaq 100 e-minis were up 86.5 points, or 0.92%.

The S&P 500 index <.spx> closed up 1.23% at 2,991.77 on Tuesday.

Travel-related stocks, which were among the worst hit in the sell-off earlier this year, continued to outperform. United Airlines Holdings Inc , American Airlines Group Inc rose more than 7% in premarket trade.

Planemaker Boeing Co is expected to announce U.S. job cuts this week, people briefed on the plans and a union said. Its shares rose 3.1%.

Walt Disney Co was set to announce its proposal for a phased reopening of its Orlando, Florida, theme parks to a local task force on Wednesday. Disney shares gained 1.9%.

(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)