The major U.S. index futures are currently pointing to a slightly higher open on Tuesday, with stocks likely to add to the modest gains posted in the previous session.

Strength in overseas markets may carry over onto Wall Street after China’s central bank announced a slew of stimulus measures.

At a press conference on Tuesday, People’s Bank of China Governor Pan Gongsheng said the bank would reduce the reserve requirement ratio by 50 basis points.

The bank also framed measures aims to support the property market. The minimum down payment ratio for second homes will be reduced to 15 percent from 25 percent. The bank intends to cut the existing mortgage rates and bring it closer to the new mortgage rates.

Further, Pan said the PBoC would establish a swap program for securities, funds and insurance companies to secure liquidity from the central bank through asset collateralization.

U.S. stocks closed higher on Monday and the Dow and S&P 500 posted record highs, although the gains were just marginal, as investors largely made cautious moves ahead of some crucial economic data and Fed speeches.

Reports on durable goods orders, new home sales and consumer confidence are likely to attract attention this week along with a report on personal income and spending that includes the Fed’s preferred inflation gauge.

The Dow ended up by 61.29 points or 0.2 percent at 42,124.65. The S&P 500 closed up 16.02 points or 0.3 percent at 5,718.57, while the Nasdaq settled with a gain of 25.95 points or 0.1 percent at 17,974.27.

The undertone was positive amid optimism about the outlook for the economy following the Federal Reserve’s interest rate cut last week.

The Fed is expected to continue lowering rates in the coming months amid signs of slowing inflation even as the economy remains relatively strong.

“Markets on Wall Street are still fired up after the Fed’s outsized interest rate cut last week and the anticipation that further cuts are on the way sooner rather than later,” said Danni Hewson, head of financial analysis at AJ Bell.

She added, “Looking at today’s market movements investors seem to feel the Fed’s got its playbook in order and that any cuts are being timed to keep the economy firing and to avoid a damaging slowdown.”

The markets also benefited from a notable advance by shares of Intel (NASDAQ:INTC), with the semiconductor giant jumping by about 3 percent. The rally by Intel came after a report from Bloomberg said Apollo Global Management (NYSE:APO) has offered to make a multibillion-dollar investment in the company.

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