US open: Stocks open higher following better-than-expected Chinese data

As of 1530 BST, the Dow Jones Industrial Average was up 0.27% at 26,892.76, while the S&P 500 was 0.34% firmer at 2,971.84 and the Nasdaq Composite started out the session 0.38% stronger at 7,969.49.

The Dow opened 72.51 points higher on Monday after seeing out the previous session lower following reports that the White House was looking into limiting US investment into China and forcing Chinese companies to de-list from US exchanges, but on Saturday the US Treasury denied that any such plans were being contemplated "at this time".

Chinese state-run outlet The Global Times labelled the potential restrictions as "the latest attempt at decoupling" and cautioned that the move would have "significant repercussions" for both economies and their companies moving forward.

Oanda analyst Craig Erlam said: "It seems every time we take a step forward with the trade war and optimism rises ahead of a meeting between the two teams, we get some negative headlines."

However, Erlam noted that investors were becoming used to threats ahead of talks between the two economic superpowers, with the next round set to kick off on 10 October, adding that any follow-through would be "rather dramatic".

A statement made by a Treasury spokeswoman over the weekend claimed the administration was not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time. This, along with some stronger-than-anticipated economic data out of China, helped boost sentiment on the Street.

Overnight, the unofficial Caixin/Markit factory purchasing managers’ index was 51.4 for the month, above expectations for a reading of 50.2 in a poll of economists conducted by Reuters. It was an improvement from the 50.4 figure for August as well, with growth above the 50-mark indicating growing expansion for the sector.

Beijing's official indicator was also above expectations but was still below the 50-mark which separates expansion from contraction at 49.8.

Elsewhere, US House Intelligence Committee Chairman Adam Schiff said over the weekend that Congress was hell-bent on gaining access to Donald Trump's telephone calls with his Russian counterpart, Vladimir Putin, and other world leaders, citing concerns that the president had compromised national security.

On the data front, the Chicago Purchasing Manager's Index contracted for the third time in four months in September, reflecting ongoing struggles by US manufacturers.

The Chicago PMI business barometer fell to 47.1 this month, down from a reading of 50.4 in August, according to MNI Indicators. Wall Street had expected a reading of 50.

Still to come, the Dallas Fed's Manufacturing Index for September will be published shortly.

While there were no major corporate earnings slated for release on Monday, Apple shares picked up more than 1% in early trade after a price-target increase over at JP Morgan implied a more-than 20% increase for the tech behemoth over the next year.