US stock futures slide after US plots fresh China tariffs
Wall Street traders are bracing for a bruising day on Wednesday after the Trump administration started the process of imposing tariffs on a further $200bn of imports from China, in a sharp escalation of the trade battle between the world’s two largest economies.
With an hour to go before the opening bell, futures for the S&P 500 are down 0.7 per cent while those for the Dow Jones Industrial Average and the Nasdaq 100 both dropped 0.8 per cent.
The moves follow a sharp selloff in Chinese and Hong Kong stocks on Wednesday. European stocks posted smaller drops, although those more exposed to China’s economy and the trade dispute – namely miners and metals maker – took a bigger hit.
US chipmakers were among the biggest losers in pre-market trade. Advanced Micro Devices, Nvidia and Micron Technology were all down more than 1 per cent amid fears that China would retaliate by banning these companies – whose memory chips are used in many smartphones, computers and other devices – from the country.
Industrial stocks, after having enjoyed several days of calm, are back under fire again. Boeing is down 1.2 per cent, Caterpillar dropped 1.5 per cent and Deere & Co. shed 2 per cent amid the heightened trade war fears.
The jitters helped boost demand for Treasuries however. Yield on the 10-year, which move inversely to price, is down 2.6 basis points at 2.8473 per cent. The dollar also got a bump, with the dollar index up 0.2 per cent at 94.33.
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