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Futures up: Dow 1.69%, S&P 500 1.11%, Nasdaq 0.91%
April 8 (Reuters) - U.S. stock index futures edged
higher on Tuesday after taking in trillions of dollars in losses
since last week, signaling a rebound as investors keenly await
any sign of the U.S. opening up for negotiations over some of
the aggressive tariffs.
Most megacap and growth stocks ticked higher in premarket
trading, with Tesla, Amazon, Meta Platforms ( META )
and Nvidia rising close to 2% each.
Uncertainty, however, persisted after China said on
Tuesday it will never accept the "blackmail nature" of the U.S.
to Trump's threat to ratchet up tariffs on imports from China to
more than 100%.
This was in response to China's decision to match
'reciprocal' duties he initially unveiled last week.
Wall Street has sold-off sharply since the sweeping import
tariffs were announced, leaving the S&P 500 near its
lowest levels in more than 11 months.
The Nasdaq confirmed a bear market on Friday, while
the S&P 500 and the Dow are down more than 15% from their
record-high closes.
Dow E-minis were up 644 points, or 1.69%, S&P 500
E-minis added 56.5 points, or 1.11%, and Nasdaq 100
E-minis were up 156.5 points, or 0.91% by 04:27 a.m. ET.
Worries that the aggressive U.S. tariffs could spur
inflation and tip the global economy into a recession have led
to greater pricing of interest-rate cuts by the Federal Reserve.
"While the growth outlook has worsened, the risk of higher
US inflation has also increased, and this looks set to remain
the priority for the FOMC," said Matthew Ryan, head of market
strategy at financial services firm Ebury.
Traders see more than 96 basis points of easing by the
December, implying three fully priced in 25-bps cuts and a 84%
chance of a fourth such a reduction, according to LSEG data.
A consumer price inflation reading is also due on Thursday,
which could offer more clues on the inflation trajectory.
Providing some cushion to U.S. equities was easing Treasury
yields, with those on the 10-year note easing a
touch to 4.14% after surging more than 16 basis-points in the
last session.
The CBOE Volatility index - seen as Wall Street's
'fear gauge' - eased to 44.1 points after rising to more than 60
on Monday - levels last seen back in August.
Among individual stocks, chipmaker Broadcom ( AVGO )
advanced 3.3% after the company said it was launching a new
share buyback program of up to $10 billion, set to run through
the end of the year.
Marvell Technology ( MRVL ) gained 2.9% after German
chipmaker Infineon Technologies said it would buy the
company's automotive ethernet business for about $2.5 billion in
cash.
UnitedHealth Group ( UNH ) jumped 5.8% after the U.S.
announced 5.06% increase in payment rates to private insurers
for 2026 Medicare Advantage health plans.
Other health insurers such as Elevance Health ( ELV ) and
Humana also rose in low volumes.
(Reporting by Shashwat Chauhan in Bengaluru; Additional
reporting by Rashika Singh; Editing by Arun Koyyur)