Dow futures point to 200-point skid at open after Trump remark on China trade
Stock index futures pointed to a second day of heavy losses on Wall Street Tuesday, after President Donald Trump said the idea of holding off on a U.S.-China trade deal until after the 2020 presidential election had appeal, undermining market confidence that a deal may be done before fresh import tariffs are imposed on December 15.
Stocks saw their biggest one-day decline in nearly eight weeks on Monday, with the Dow DJIA, -0.96% falling 268.37 points, or 1%, to end at 27,783.04. The S&P 500 SPX, -0.86% dropped 27.11 points or 0.9%, to close at 3,113.87, while the Nasdaq Composite COMP, -1.12% finished at 8,567.99, with a loss of 97.48 points or 1.1%.
While Trump has made similar comments in the past, analysts said stocks remain highly sensitive to headlines and comments on the trade talks, with optimism over the prospect for a so-called phase one deal running high since early October. “The run higher seen in major benchmarks in the past few months has been built in no small part on questionable foundations with near incessant positive noises on the U.S.-China trade front seemingly the major catalyst,” said David Cheetham, chief market analyst at XTB Limited, in a note.Major stock indexes rallied to a series of record highs in November, but investors and analysts have warned that markets could be in for a rougher ride if concrete progress isn’t seen ahead of a Dec.
U.S. stocks were also pressured Monday following a weaker-than-expected reading on the Institute for Supply Management’s November manufacturing index.Which stocks are in focus? Semiconductor stocks were under pressure in premarket trade Monday amid growing uncertainty over U.S.-China trade. Advanced Micro Devices Inc. AMD, -1.07% was down 3.1%, Micron Technology Inc. MU, -2.36% had lost 2.6% and Nvidia Corp. NVDA, -3.46% shed 2.9%.
Shares of E.l.f Beauty Inc. ELF, -1.15% fell 2% before the bell Tuesday after shareholder Marathon Partners urged the company to consider a strategic overhaul, including a possible sale, in a letter to the board of directors.
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