Investing.com - U.S. stock futures pointed to strong gains at the open on Tuesday, as markets look set to recover from a China-led selloff the previous day.
During early morning hours in New York, the blue-chip Dow futures rallied 492 points, or 3.13%, the S&P 500 futures jumped 62 points, or 3.28%, while the Nasdaq 100 futures rose 145 points, or 3.62%.
On Monday, the Dow lost 589 points, while the S&P dropped 80 points to fall into correction territory, as fears of a China-led global economic slowdown churned through markets.
On the data front, the U.S. is to release private sector data on consumer confidence and a report on new home sales at 10:00AM ET.
In Europe, Germany's DAX rallied more than 3%, while France’s CAC 40 and London's FTSE 100 were both up around 3%, one day after suffering their worst selloff in nearly seven years.
Global equity markets plunged on Monday as fears of a China-led global economic slowdown spooked traders and rattled sentiment.
Worries over China's economy lingered after the Shanghai Composite tumbled more than 7% on Tuesday to close below the key 3000-level, one day after suffering its biggest one-day drop since February 2007.
Investors continued to dump Chinese shares amid disappointment that Beijing has held back from implementing fresh measures to support stocks.
Chinese equities have lost nearly 30% over the past two weeks amid growing fears over China's slowing economy and worries that Beijing may allow the yuan to continue to depreciate.
Financial markets have been roiled since China devalued the yuan on August 11, sparking a selloff in equities, commodities and emerging-market assets.
Elsewhere, oil futures rose on Tuesday, one day after plunging to levels not seen since the peak of the global financial crisis in 2009, as European and U.S. equity markets rebounded from a brutal selloff in the prior session.
U.S. crude was up 3% at $39.37 a barrel while Brent tacked on 2.85% to $43.91 a barrel.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.35% early Tuesday to 93.70.
The dollar plunged almost 2% on Tuesday to hit a seven-month low of 92.52, as mounting uncertainty over the global growth outlook and the subdued U.S. inflation outlook prompted investors to push back expectations for an initial rate hike by the Federal Reserve.
Some traders believe the U.S. central bank could postpone raising interest rates until December, as officials are likely to remain concerned over weak global growth and inflation pressures due to China’s shock currency devaluation move and plunging oil prices.