The major U.S. index futures are pointing to a sharply lower opening on Tuesday, with stocks likely to extend the pullback seen over the two previous sessions.
Renewed trade concerns may weigh on the markets after President Donald Trump suggested he might prefer to wait until after the 2020 elections to strike a trade deal with China.
Trump told reporters at a NATO summit in London there is no deadline to reach a trade deal, adding, “In some ways, I think it’s better to wait until after the election.”
“But they want to make a deal now, and we’ll see whether or not the deal’s going to be right; it’s got to be right,” Trump said.
Trump claimed a potential trade deal is only dependent on whether he wants to sign it, because the U.S. is “doing very well” and China is “having by far the worst year that they have had in 57 years.”
The comments from the president added to rising trade concerns after his administration threatened to impose duties of up to 100 percent on $2.4 billion in French imports, including champagne and handbags.
The threat comes after the administration concluded France’s new digital services tax discriminates against U.S. companies such as Google (GOOGL), Apple (AAPL), Facebook (FB), and Amazon (AMZN).
Nonetheless, overall trading activity may be somewhat subdued, with a lack of major U.S. economic data keeping some traders on the sidelines.
Traders may also be reluctant to make significant moves ahead of the release of the closely watched monthly jobs report on Friday.
Stocks showed a notable move to the downside during trading on Monday, extending the pullback seen on Friday. With the drop on the day, the major averages pulled back further off the record highs set last Wednesday.
The Dow ended the day