U.S. stock futures climbed early on Wednesday as investors took cheer from a report that Beijing and Washington are still working toward a phase one trade deal, offsetting fears of a delay sparked a day earlier by President Donald Trump’s remarks.

What are stocks doing?

Dow Jones Industrial Average futures YMZ19, +0.52%  were up 113 points, or 0.4%, at 27,600, while S&P 500 futures ESZ19, +0.45%  climbed 11.15 points, or 0.4%, to 3,102.25. Nasdaq-100 NQZ19, +0.52%  futures rose 37.75 points, or 0.5%, to 8,289.

On Tuesday, the Dow Jones Industrial Average DJIA, +0.66% ended 280.23 points lower, down 1%, at 27,502.81, for its biggest one-day point and percentage drop since October 8. The S&P 500 index SPX, +0.55% finished with a loss of 20.67 points, or 0.7%, at 3,093.20, while the Nasdaq Composite Index  COMP, +0.51% retreated 47.34 points, or 0.6%, ending at 8,520.64.

What’s driving the market?

Stocks climbed in Europe and were set to rebound in the U.S. after Bloomberg reported, citing sources, that despite signs of fresh tensions, Beijing and Washington were making progress toward a phase one trade deal.

Those sources said that a phase one agreement would be completed before another set of China tariffs is set to kick in on December 15. Stocks slumped on Tuesday after U.S. President Donald Trump said at a news conference in London, where he was attending a NATO meeting, that he had “no deadline” when it comes to concluding the two-year-old U.S.-China trade talks.

“It still baffles me that investors hang on every Trump statement and tweet,” said Craig Erlam, an analyst with OANDA Europe. “His trade deal optimism changes on a near-daily basis and yet investors are very sensitive to it. It’s probably a reflection of the relative lack of other talking points.”

Read: What a ‘no-deal’ U.S.-China trade scenario would mean for stocks and bonds

The sources told Bloomberg that Trump’s comments shouldn’t be read as an indication negotiations were at an impasse, nor would U.S. legislation aimed at supporting Hong Kong protesters and ethnic Muslims in the far west of China affect a deal.

Private-sector employers hired just 67,000 workers in November, payroll processor ADP said Wednesday morning, a much weaker reading than analysts had forecast, made worse by downward revisions to earlier months.

Fresh data on the services sector of the U.S. economy is also due Wednesday: the Markit services sector purchasing managers index is released at 9:45 a.m. Eastern and the Institute for Supply Management’s nonmanufacturing index is due at 10 a.m.

At 10 a.m., Federal Reserve Vice Chairman Randal Quarles will testify before the House Financial Services Committee. The hearing is about banking supervision, not monetary policy.

What stocks are in focus?

Shares of Tesla Inc. TSLA, -0.69% moved up in premarket trading after an analyst upgrade. Citi analysts said shares were likely to hit $222, up from a previous target of $191, but that still implies a hefty decline for the stock, which closed Tuesday at $336.20.

G-111 Apparel Group Ltd. GIII, -8.14% shares fell in premarket hours after the owner of fashion brands like Calvin Klein missed sales expectations and lowered its guidance. The company said tariffs were biting into its business.

Shares of Campbell’s Soup CPB, +0.62% slid 2.5% after the company reported earnings that were weaker than a year ago and cut its 2020 sales growth guidance.

Investors will also be watching for third-quarter results from Restoration Hardware RH, +0.93%, Slack Technologies, Inc. WORK, -2.70%, and H&R Block Inc., HRB, +0.85% among others.

What are other markets doing?

The yield on the 10-year U.S. Treasury note TMUBMUSD10Y, +1.60% ticked up three basis points to 1.74%.

In commodities markets, the price of a barrel of West Texas Intermediate crude oil CL00, +3.08% edged up 1.60% to $57.

Gold for February delivery GCG20, -0.18% fell 3.30 to $1,474.90.

The U.S. dollar edged down fractionally against a basket of its peers.

European stocks were higher, with the STOXX Europe SXXP, +0.85% up a little more than 4 points, 1%, to 402.76.

In Asia overnight, the Hang Seng fell 328 points, 1.3%, and the China CSI 300 ticked down 1.3 points to 3,849.82.

Related: Don’t get so excited, this economist says — the trade news isn’t that good