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US stock index futures rose on Tuesday after China further relaxed its COVID-19 curbs, fuelling hopes of a recovery in the world’s second largest economy.
China said it would stop requiring inbound travelers to go into quarantine starting Jan. 8, a major step in reopening its borders, adding that it would also downgrade the seriousness of Covid as it has become less virulent.
US-listed shares of Chinese firms such as JD.Com Inc , Alibaba Group Holding , Pinduoduo Inc (PDD.O) climbed between 2.5% and 3% in premarket trading, reported Reuters.
With a handful of trading sessions left this year, investors are hoping for a so-called “Santa rally” at the end of what has been a largely disappointing month for U.S. equities.
The benchmark S&P 500 (.SPX) and the tech-heavy Nasdaq (.IXIC) have lost 5.8% and 8.5%, respectively, so far in December and are on track for their biggest yearly loss since the financial crisis of 2008 on fears that the Federal Reserve’s aggressive monetary policy tightening could tip the U.S. economy into a recession.
Economic data so far has offered little hope that the Fed could hit the brakes on its interest rate hikes.
