U.S. stock futures rise as worries about China’s growth decrease.

In anticipation of Beijing relaxing its COVID-zero policies, which sparked significant protests over the weekend and increased investor concerns about global economic growth, U.S. stock index futures gained some ground early on Tuesday.

On Monday, the S&P 500 SPX, -0.06% fell 62 points, or 1.54%, to 3964, the Nasdaq Composite COMP, -0.03% dropped 177 points, or 1.58%, to 11050, and the Dow Jones Industrial Average DJIA, -0.11% fell 498 points, or 1.45%, to 33849.

What fuels markets

Tuesday saw a rebound in Asian stocks as unrest in China decreased and expectations that Beijing might loosen Covid-19 restrictions increased.

For the time being, mass COVID protests in China have been put an end by police, Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said.

Concerns that a wave of anti-COVID-lockdown protests would result in a crackdown by Beijing, further impeding activity in the world’s second-largest economy and slowing global growth, caused stocks, bond yields, and industrial commodity prices to fall at the start of the week.

However, China’s National Health Commission announced on Tuesday that it would increase COVID vaccinations for the elderly, a decision that might allow for the imposition of less stringent COVID restrictions.

After dropping 1.6% on Monday, Hong Kong’s Hang Seng index HSI, +5.24% jumped 5.2%.

According to Ian Williams, strategist at Peel Hunt, “the unrest in China duly weighed on equity indices everywhere yesterday, and some moderately hawkish commentary from FOMC members weighed additionally on the U.S. market.”

Williams continued, “However, the mood has improved significantly throughout the Asian session following a more encouraging update on COVID cases and rumors that some of the local restrictions may be relaxed.”

Prior to this weekend’s OPEC+ meeting, U.S. crude oil CL.1, +2.76%, which on Monday hit a close to 11-month low, climbed 2.1% to $78.82 a barrel, and copper HG00, +0.94%, the industrial metal that typically closely tracks perceptions of Chinese demand.

The S&P Case-Shiller U.S. home price index and the FHFA home price index, both covering September, are scheduled for release on Tuesday at 9 a.m. Eastern.