Stock futures edged higher Thursday, erasing modest losses seen after U.S. President Donald Trump appeared to target China telecommunications group Huawei with an emergency declaration against threats to U.S. technology — potentially adding to trade tensions between the world’s two largest economies.
How are major indexes faring?
Dow Jones Industrial Average futures YMM9, +0.36% were up 70 points, or 0.3%, at 25,744, while S&P 500 futures ESM9, +0.37% rose 8.75 points, or 0.3%, to 2,863,75. Nasdaq-100 futures NQM9, +0.35% rose 27 points, or 0.3%, to 7,556.25.
On Wednesday, the Dow Jones Industrial Average DJIA, +0.45% rose 115.97 points, or 0.5%, to 25,648.02 and the S&P 500 index SPX, +0.58% 0.6% to 2,850.96. The tech-heavy Nasdaq Composite Index COMP, +1.13% outperformed its peers 1.1%, to 7,822.15.
What drove the market?
The Trump administration appeared to fire a fresh salvo in a trade spat with China late Wednesday, issuing an executive order that bans telecom equipment from countries considered “foreign adversaries”. The move seemed all but targeted at Huawei, which has been under pressure from the White House for months. The Commerce Department will have 150 days to figure out regulations.
A spokesman for China’s Commerce Ministry said the country opposes other countries imposing unilateral sanctions on Chinese entities and that Washington should avoid further affecting Sino-U.S. relations, Reuters reported. The spokesman also said he had no information on plans for a U.S. trade delegation to visit China, the report said.
The tussle comes against the backdrop of trade tensions between the U.S. and China that have triggered volatility across global equity markets. Huawei responded to CNBC that such a move will only put the U.S. behind when it comes to 5G development, given the