Stock futures erased solid overnight gains early Thursday after China vowed to take steps to counter U.S. tariffs, rattling global equity markets and sending Dow futures lower.
Markets were shaken by a pair of reports out of Asia. China has to take necessary counter-measures to the latest U.S. tariffs on $300 billion of Chinese goods, the finance ministry said Thursday. The ministry also said the U.S. tariffs violate a consensus reached by leaders of two countries and get off the right track of resolving disputes via negotiation.
Separately, the Hong Kong government announced plans to implement stimulus measures to help its sagging economy. The government also cut its growth forecast to potentially flat for the rest of the year, down from the already anemic 0.5% growth it was expecting.
Around 6:38 a.m., Dow futures indicated a loss of more than 220 points, after rallying more than 150 points earlier in the overnight session. S&P 500 futures were lower by 0.7% while Nasdaq futures shed 1.2%.
That follows the Dow Jones Industrial Average’s worst day of the year on Wednesday amid a recession signal from the bond market. The stock market took a huge hit in the previous session with the Dow plunging 800 points in its fourth-largest point drop ever to a two-month low. The Dow’s 3% drop was the worst this year. The S&P 500 also fell nearly 3%.
Cisco shares plunged 9% in premarket trading after it said future earnings would be lighter than expected because of a “significant impact” from the U.S.-China trade war. The tech giant also said China revenue fell 25% last