Stock index futures rose sharply on Wednesday, erasing earlier losses, after China said it was cutting its bank reserve requirement ratio by 50 basis points.

S&P 500 futures rose 10.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 85 points, and Nasdaq 100 futures added 22.5 points.

(Reporting by Angela Moon; editing by Jeffrey Benkoe)