NEW YORK/BENGALURU (Dec 1): US stock index futures rose about 1% on Tuesday, as better-than-expected manufacturing data from China and hopes that major drugmakers will roll out vaccines before the end of the year increased bets of a quick recovery from the Covid-19 crisis.
Investors are closely following updates on the handful of leading vaccines, as well as the start of global shipments as drugmakers submit paperwork for regulatory approvals.
Drugmaker Pfizer Inc gained about 3% in premarket trade, as the drugmaker and Germany's BioNTech SE sought emergency approval of their vaccine from the European regulator.
The partners are now neck-and-neck with rival Moderna, which said on Monday that it would ask the EU regulator to recommend conditional approval for its shot.
Cruise operators Carnival Corp, Royal Caribbean Cruises Ltd and carriers Delta Air Lines Inc and United Airlines Holdings rose between 2% and 5%.
Big US banks, which are sensitive to the economic outlook, gained between 1.4% and 2.1%.
Wall Street's main indexes ended lower on Monday on profit taking at the end of the Dow's best month in more than three decades, as breakthroughs in vaccine development spurred a shift towards sectors hardest-hit by virus induced shutdowns.
At 06:56 a.m. ET, Dow E-minis were up 1.13%, S&P 500 E-minis were up 1.08% and Nasdaq 100 E-minis were up 0.92%.
China's factory sector activity grew at its fastest pace in a decade in November, a business survey showed. Several other countries also reported sharp upticks in industrial activity.
Later in the day, markets will focus on US manufacturing data for November, as well as remarks from Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell at a congressional hearing.
Powell on Monday said while the news on the vaccine front is very positive, its impact on the economy will be unclear until challenges such as vaccine production and mass distribution are resolved.
Among other stocks, Zoom Video Communications Inc dropped about 8% after the company warned its gross margins would remain under pressure going into 2021.
Tesla Inc rose about 5% after S&P Dow Jones Indices said it would add one of Wall Street's most valuable companies to the S&P 500 index all at once on Dec 21.