Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

US STOCKS-Futures slide as rising trade tensions fuel slowdown worries

Published 05/29/2019, 07:06 PM
Updated 05/29/2019, 07:10 PM
US STOCKS-Futures slide as rising trade tensions fuel slowdown worries
AAPL
-
NVDA
-
MU
-
AMD
-
ESZ24
-
1YMZ24
-
NQZ24
-
US3MT=X
-
US10YT=X
-

(For a live blog on the U.S. stock market, click LIVE/ or
type LIVE/ in a news window.)
* Futures down: Dow 0.63%, S&P 0.61%, Nasdaq 0.85%

By Amy Caren Daniel
May 29 (Reuters) - U.S. stock index futures tumbled on
Wednesday, as growing trade tensions between the United States
and China fanned worries about a global economic slowdown,
keeping investors away from risky assets.
China is ready to use rare earths, a group of 17 chemical
elements used in everything from high-tech consumer electronics
to military equipment, to strike back in a trade war with the
United States, Chinese newspapers warned. Adding to worries, China's Huawei Technologies Co Ltd
HWT.UL filed a motion for summary judgment in its lawsuit
against the U.S. government, in the telecoms equipment maker's
latest bid to fight sanctions from Washington that threaten to
push it out of global markets. "Until markets see encouraging signs of both sides securing
a trade deal, this negative sentiment and general risk aversion
will most likely continue punishing global equity markets," FXTM
analyst Lukman Otunuga wrote in a note.
Trade worries and slowdown fears have pushed investors to
dump shares globally and head for the safety of German and U.S.
government debt.
This led to yields on the benchmark U.S. 10-year notes
US10YT=RR fall more than 10 basis points below the 3-month
US3MT=RR rates, causing a yield-curve inversion, typically
seen as a leading indicator of a recession. The inversion is the
deepest in almost 12 years. US/
Interest-rate sensitive bank stocks fell in premarket
trading, with JPMorgan Chase & Co JPM.N , Bank of America Corp
BAC.N and Wells Fargo WFC.N down between 0.5% and 1%.
At 6:37 a.m. ET, Dow e-minis 1YMc1 were down 161 points,
or 0.63%. S&P 500 e-minis ESc1 were down 17 points, or 0.61%
and Nasdaq 100 e-minis NQc1 were down 61.75 points, or 0.85%.
The declines were broad based, with 27 of the 30 Dow
components that were trading premarket posting losses.
Tariff-sensitive stocks such as Apple Inc AAPL.O , Boeing Co
BA.N and Caterpillar Inc CAT.N fell 1%.
Chipmakers, which get a large portion of their revenue from
China, also declined, with shares of Nvidia Corp NVDA.O ,
Micron Technology Inc MU.O and Advanced Micro Devices Inc
AMD.O off about 1.5%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.