Stock futures are under control after a strong rebound on hopes of recovery By Reuters

By Medha Singh

(Reuters) – US stock index futures made waves on Tuesday as investors halted after a three-day period boosted by hopes that major economies will react to counter the global economic slowdown.

After a stormy start to the worsening trade tensions between the United States and China, the indices rebounded sharply, with the S & P 500 () and Nasdaq () erasing last week's losses. seems to indicate that Germany and China are considering taking stimulus measures.

According to a report released on Monday, White House officials are discussing the possibility of a temporary reduction in payroll taxes in order to revive the economy.

A series of retail recipes this week will test US consumer demand. Home Depot Inc. (N 🙂 beat the quarterly earnings outlook while reducing its sales forecast for the year, due to the potential impact of the trade war on consumer spending. Target (N :), Lowe (N 🙂 and Nordstrom (N 🙂 report later this week.

All eyes will be on Wednesday's release of the Federal Reserve's July meeting minutes and President Jerome Powell's speech on Friday at the Jackson Hole Central Bankers Conference.

Powell's remarks will be carefully monitored if further easing measures are contemplated, especially since the US-China trade war is far from resolved and fears of recession are growing, signaled by the reversal of the US yield curve last week.

Although Powell called last month's interest rate cut as a "mid-cycle" policy adjustment, traders are now fully expecting another rate cut in September.

At 6:51, ET, down 6 points, or 0.02%. The S & P 500 minis lost 0.25 points, or 0.01%, and increased 4.25 points, or 0.05%.

The benchmark S & P 500 () benchmark fell about 7% from the record high in July last week, but it only drops about 3% compared to this level.

Shares of HP Inc. (N 🙂 slipped 2% after Citigroup (NYSE 🙂 has downgraded the PC maker to "neutral" from "buy".

US listed shares of Baidu Inc. (O 🙂 jumped 9.9% after the Chinese internet search giant announced quarterly earnings above expectations.