Stock futures tumbled sharply on Monday, as global markets sold off amid fears that trade talks between the U.S. and China were on the verge of collapse, after President Donald Trump threatened to raise tariffs on $200 billion of Chinese goods.
How are benchmarks performing?
Dow Jones Industrial Average futures YMM9, -1.78% slid 479 points, or 1.8%, to 26,021, while S&P 500 futures ESM9, -1.61% fell 48.35 points, or 1.6%, to 2,899. Nasdaq-100 futures NQM9, -2.00% slumped 164 points, or 2.1%, to 7,702.25.
On Friday, the Nasdaq Composite Index COMP, +1.58% advanced 127.22 points, or 1.6%, at 8,164, with technology-heavy index carving out an all-time high. The S&P 500 index SPX, +0.96% climbed 1% to 2,945.64. The Dow DJIA, +0.75% rose 197.16 points, or 0.8%, to 26,504.95.
What’s driving the market?
In a surprise pair of tweets early late Sunday, Trump expressed frustration with the speed of talks with China, and threatened to raise tariffs on $200 billion of Chinese goods by Friday of this week to 25% from 10%. “The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” he wrote.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars….
— Donald J. Trump (@realDonaldTrump) May 5, 2019
Trade negotiations were set to resume this week between the two countries and last week U.S. officials had seemed hopeful a deal was imminent. Beijing, which has in the past rejected pressure tactics from the U.S., said Vice Premier Liu He’s planned trip to Washington this week could be canceled altogether,