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Market Snapshot: U.S. stock futures rise in holiday trade as Shanghai sets reopening plans

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U.S. stock futures rose on Monday in light holiday volume, helped by plans from the world’s number-two economy to lift some restrictions as it fights COVID more aggressively than the rest of the world.

What’s happening

While U.S. stock exchanges are closed in observance of Memorial Day, electronic futures trading continues.

Futures on the Dow Jones Industrial Average
YM00,
+0.67%

rose 264 points, or 0.8% to 33422.

Futures on the S&P 500
ES00,
+0.93%

gained 45 points, or 1.1%, to 4201.

Futures on the Nasdaq 100
NQ00,
+1.38%

increased 194.25 points, or 1.5% to 12872.

On Friday, the Dow Jones Industrial Average
DJIA,
+1.76%

rose 576 points, or 1.76%, to 33213, the S&P 500
SPX,
+2.47%

increased 100 points, or 2.47%, to 4158, and the Nasdaq Composite
COMP,
+3.33%

gained 390 points, or 3.33%, to 12131.

What’s driving markets

Shanghai over the weekend said it would lift restrictions on businesses and offer tax rebates, and Beijing reopened some public transportation, signs of a loosening of the zero-COVID policies that have limited output in China.

“The easing is mainly an issue for domestic demand—Chinese exports continued to grow during the restrictions. However, some international companies produce in China for Chinese consumption, so the easing has relevance for some global equities,” said Paul Donovan, chief economist at UBS Global Wealth Management.

European-listed luxury producers that sell into China, including LVMH Moet Hennessy
MC,
+3.64%
,
advanced. The Shanghai Composite
SHCOMP,
+0.60%

rose 0.6%, and the Hang Seng
HSI,
+2.06%

rallied over 2% in Hong Kong.

There’s a big slate of U.S. economic data on tap this week, including Wednesday’s release of the Institute for Supply Management manufacturing index, and Friday’s release of nonfarm payrolls.

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