(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* Trump moves to ease trade tensions with China
* Shares of tariff-sensitive Apple, Boeing rise
* U.S. core capital goods orders rise; shipments tumble
* Futures up: Dow 0.77%, S&P 0.55%, Nasdaq 0.64% (Adds comment, details; updates prices)
By Akanksha Rana
Aug 26 (Reuters) - Wall Street was set to open higher on Monday as U.S. President Donald Trump moved to ease trade tensions with China, soothing investor nerves after intense feuding between the world’s top two economies last week sent stocks into a tailspin.
The benchmark S&P 500 index logged its worst run of weekly losses on Friday since a selloff in late May after both sides threatened to slap more tariffs on each other’s goods, and Trump told U.S. companies to look for alternatives to doing business with China.
In a softening of stance, Trump said on Monday Beijing had contacted Washington overnight to say it wanted to return to the negotiating table, adding that talks between the two countries were “more meaningful” than any time.
“The sentiment today is conciliatory, the president is trying to walk back,” said Art Hogan, chief market strategist at National Securities in New York.
“Whether or not he (Trump) has a phone call with China doesn’t matter, the point is that he is attempting to keep the September meeting scheduled and get back to the negotiating bit.”
Shares of tariff-sensitive stocks including Apple Inc rose 1.8%, while those in Boeing Co jumped 2.6%in premarket trading.
Chipmakers, which are heavily reliant on China for their revenue, also rose in early trading. Intel Corp, Qualcomm Inc, Advanced Micro Devices Inc and Nvidia Corp were up between 1.2% and 3%.
Concerns about the global economy slipping into recession and uncertainty over the pace of U.S. interest rate cuts have made investors nervous about how far the longest cycle of U.S. expansion can survive. The S&P 500 closed about 6% off its record high on Friday.
However, a batch of strong earnings from retailers including Walmart Inc and Target Corp in the past weeks has bolstered confidence in domestic growth.
Data from the Commerce Department showed new orders for key U.S.-made capital goods unexpectedly rose in July, but shipments fell by the most in nearly three years, suggesting business investment remained soft and could weaken further amid an escalation in U.S.-China trade tensions.
At 8:52 a.m. ET, Dow e-minis were up 197 points, or 0.77%. S&P 500 e-minis were up 15.75 points, or 0.55% and Nasdaq 100 e-minis were up 48.25 points, or 0.64%.
Among other stocks, Celgene Corp rose 3.6% after Amgen Inc said on Monday it would buy the company’s psoriasis drug Otezla, clearing the way for Bristol-Myers Squibb to go ahead with its $74 billion deal for Celgene. Shares of Bristol-Myers jumped 4.3%.
Shares of Beyond Meat Inc rose 2.6% after Yum Brands Inc said it will be testing Beyond Meat’s plant-based nuggets at an Atlanta KFC restaurant. (Reporting by Akanksha Rana in Bengaluru Editing by Saumyadeb Chakrabarty)