Global markets are higher after China cut its benchmark interest rate early this morning.
The surprise move has sent the June S&P 500 futures surging 9.75 points, or 0.74 percent, to 1325 as of this writing. The June Nasdaq 100 contracts are up 16 points, or 0.61 percent, to 2565.50.
China's rate reduction also boosted several commodities, led by a 1.62 percent jump in crude oil to 86.43 a contract. Copper futures initially broke yesterday's overhead resistance at 3.38, though is currently back under that level at 3.375. Spot gold futures are down 0.58 percent to 1625.40 but well off their low of 1615.
European indexes are expectedly higher, with the U.K. FTSE 100 gaining 1.35 percent and the German DAX up 1.16 percent. Asian indexes rose as well, with Japan's Topix up 1.7 percent and Nikkei 225 gaining 1.24 percent. Hong Kong's Hang Seng is up 0.85 percent.
The euro is up 0.23 percent to 1.2575 against the dollar as of this writing, off its morning high of 1.2602. If the weaker dollar/stronger euro trend continues, the indexes could see another grind higher, especially if the 8:30 a.m. ET weekly jobless claims report comes in above expectations.
Investors are likely to remain cautiously optimistic ahead of Fed Chairman Ben Bernanke's congressional testimony at 10 a.m. ET. If he changes his language on monetary policy and/or hints at possible economic stimulus, the indexes could rally.
In stock-specific news, shares of U.S. banks are higher in pre-market trading. JP Morgan leads the pack, now for 33.50 in pre-market trading.
Apple is higher by nearly 1 percent, or more than $5, to $576.77. Facebook shares are also higher by 1 percent at the $27.10 level.
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