Stock-index futures point to a lower start for Wall Street Friday as a bounceback from a rout inspired by the U.S.-China trade battle appears in danger of running out of steam, after reports in Chinese state media indicated little appetite from the Chinese to continue trade talks following Trump administration’s move to raise tariffs on Chinese imports last week.
How are the major benchmarks performing?
Futures for the Dow Jones Industrial Average YMM9, -0.73% fell 158 points, or 0.6% to 25,705, while those for the S&P 500 ESM9, -0.76% lost 18.10 points, or 0.6%, to 2,864.5 Nasdaq-100 futures NQM9, -0.90% meanwhile, declined 59.50 points, or 0.8% to 7,541.
On Tuesday, the Dow Jones Industrial Average DJIA, +0.84% rallied 214.66 points, or 0.8%, to 25,862.68, and the S&P 500 index SPX, +0.89% climbed 25.36 points, or 0.9%, to 2,876.32. The Nasdaq Composite Index COMP, +0.97% rose 75.90 points, or 1%, to 7,898.05.
What’s driving the market?
The Chinese government and state media sent a clear signal to markets Thursday and Friday that it is reluctant to resume trade talks with the U.S., when a spokesman for the Ministry of Commerce called the Trump administration’s moves to raise tariffs last week, and the threat of additional tariffs on the roughly $300 billion in annually imported Chinese so far untouched by new duties, “bullying behavior,” that has resulted in “severe negotiating setbacks.”
Chinese state media also took aim at the Trump administration’s decision to put Chinese tech giant Huawei Technologies Co. Ltd. on a list of entities that are working contrary to U.S. interests, which could result in U.S. companies needed to secure special permits to sell the company chips it relies on for end products.
State-run media, including the Communist Party’s People’s Daily