Fed relief; Oil supply; Renault's decision

Fed Chair Jerome Powell said Tuesday that he's closely monitoring developments on trade. President Donald Trump's trade wars with Mexico and China have in recent days spooked markets, increasing attention on the Fed.

"As always, we will act as appropriate to sustain the expansion," Powell said at a monetary policy conference in Chicago.

Powell did not say whether a rate cut was needed. But his comments suggest the central bank is now considering a move to support the economy.

US stock futures indicate that gains will extend into Wednesday. The Dow is set to rise 80 points, or 0.3%. The Nasdaq and S&P 500 could jump 0.4% and 0.3%, respectively.

This optimism is global. Japan's Nikkei leaped 1.8% on Tuesday, while Hong Kong's Hang Seng index rose 0.5%.

Britain's FTSE 100 and Germany's DAX increased 0.3% in early trading. The CAC 40 in France advanced 0.5%.

US stocks on Tuesday logged their best day since January. The Dow closed up 512 points, or 2.1%. The S&P 500 also ended 2.1% higher. The Nasdaq climbed 2.7%, erasing earlier losses on concerns about increased tech regulation.

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2. Oil inventory: Data on US crude inventories will be released Wednesday at 10:30 a.m. ET.

Prices for US oil have been hammered recently by reports of excess supply. They've dropped more than 14% in the past month.

That's boosting anxiety amid fears that global economic growth is slowing, which could eat into demand for energy.

The World Bank on Tuesday cut its global economic growth forecast for 2019 to 2.6%.

3. Renault's decision: Renault's board will meet again Wednesday to consider a merger pitch from Fiat Chrysler.

If completed, the merger would create the world's third largest carmaker and lower the cost of developing new technologies. Investors want to know how the deal would affect Renault's existing alliance with Nissan and Mitsubishi Motors.

Renault's board said Tuesday that it had met to review the proposal "in detail" and will "continue to study with interest the opportunity of such a combination."

Shares of Fiat Chrysler in Milan fell 0.6% in early trading. Renault stock rose 0.3%.

Want more markets? Watch CNN's "Markets Now" digital live show Wednesday at 12:45 p.m. ET.

4. Coming this week:Wednesday — EIA crude oil inventories; US services data; American Eagle Outfitters and Campbell Soup earningsThursday — ECB and Reserve Bank of India rate decisions; Europe's GDP growth estimate; Beyond Meat earningsFriday — US jobs report