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* Futures rise: Dow 1.10%, S&P 1.01%, Nasdaq 0.96%
Sept 21 (Reuters) – U.S. stock futures rebounded on Tuesday as investors tried to shake off the risks of a contagion from the Evergrande crisis in China, while focus remained on the Federal Reserve’s meeting for cues on a timeline to taper its stimulus.
Futures tracking the blue-chip Dow, which houses several economically sensitive stocks, jumped 1.1%, a day after the index tumbled 1.8% in its worst day since late-July.
World stocks, on the other hand, struggled to find footing amid concerns that a potential default by Evergrande, which owes $305 billion, could ripple across China’s property sector, banks and the broader economy.
“While street wisdom is that Evergrande is not a ‘Lehman risk’, it is by no stretch of the imagination any meaningful comfort,” analysts at Mizuho wrote in a client note.
“It could end up being China’s proverbial house of cards … with cross-sector headwinds already felt in materials/commodities.”
The S&P mining index plunged 3.2% at one point on Monday as copper prices hit a one-month low. On Tuesday, miners Freeport-McMoRan Inc and Nucor Corp edged higher in thin premarket trading.
Interest rate-sensitive banking stocks also bounced, tracking a rise in Treasury yields.
At 4:36 a.m. ET, S&P 500 e-minis were up 44 points, or 1.01%, and Nasdaq 100 e-minis were up 144 points, or 0.96%.
Wall Street’s main indexes have been roiled in September, setting the S&P 500 on course to snap seven months of gains, on fears the Fed was getting ready to signal a tapering even though macroeconomic data remains mixed.
Attention on Wednesday will be on the results of the Fed’s policy meeting, where the central bank is expected to lay the groundwork to ease its stimulus, although the consensus is for an actual announcement to be delayed until the November or December meetings.
Heavyweight technology stocks including Apple Inc, Tesla Inc, Facebook Inc and Alphabet Inc , rose between 0.9% and 1.1%.
The CBOE volatility index, known as Wall Street’s fear gauge, fell back from a four-month high hit on Monday. (Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Arun Koyyur)