By Jesse Cohen
Investing.com – U.S. stock futures rallied on Tuesday, one day after Wall Street’s major indices suffered their worst sell-off of the year as trade war tensions between China and the U.S. rattled markets.
The blue-chip indicated an opening gain of 250 points, or about 1%, by 8:00AM ET (1200 GMT), the climbed 27 points, or nearly 1%, while the tech-heavy jumped 87 points, or 1.2%.
Wall Street saw its on Monday, with the tumbling 3%, amid an escalation in the U.S.-China trade war.
The index has fallen for six consecutive sessions leading into Tuesday and is about 6% below its record closing high on July 26.
The sell-off began last week when struck a more hawkish tone than expected at the U.S. central bank’s post-meeting press conference on July 31 after he failed to signal a series of rate cuts.
Markets were then whipsawed by U.S. President Donald Trump, who on Friday shockingly announced fresh tariffs on an additional $300 billion in Chinese goods, starting on September 1.
Market reaction became even more negative on Monday, when Chinese authorities let the yuan break past the symbolic 7-per-dollar level to reach its weakest level since the 2008 Global Financial Crisis.
Several investors viewed the move in the Chinese currency as a direct response to Trump’s latest tariff threat.
That prompted Washington to label China a for the first time since 1994, sharply escalating the ongoing dispute between the world’s two largest economies.
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— Reuters contributed to this report
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