Stock Futures Plunge As Trump Reignites Trade Tensions
Zacks Investment Research | Aug 04, 2019 09:51PM ET
U.S. stock index futures plunged ahead of the market open on Monday after the trade war between the United States and China intensified. The Dow dropped more than 350 points and S&P 500 futures were trending at least 40 points lower after China retaliated strongly to Trump’s decision to impose a 10% tariff on an additional $300 billion worth of Chinese imports.
Chinese authorities hit back on Monday by asking its state-owned enterprises to cease all U.S. agricultural imports immediately. The world’s second largest economy also allowed the yuan to hit its lowest point in more than a decade, indicating that trade tensions are likely to increase further in the days ahead.
Among notable earnings released before the market opens are meat products giant Tyson Foods (NYSE:TSN) , WEC Energy Group (NYSE:WEC) and Loews Corporation (NYSE:L) . Tyson’s fiscal third-quarter earnings matched estimates while WEC Energy and Loews exceeded second-quarter earnings expectations.
Benchmarks closed in the red on Friday to post their worst single-day decline in a month. President Trump’s abrupt decision to impose additional tariffs on Chinese products and services didn’t go down well with investors. Officials from the country’s finance ministry pledged to retaliate against Trump’s move.
Such developments on the trade war front dampened the investor sentiment so much so that market watchers brushed aside the release of stellar economic data.
The Dow Jones Industrial Average decreased 0.4%, to close at 26,485.01. The S&P 500 decreased 0.7% to close at 2,932.05. The tech-laden Nasdaq Composite Index closed at 8,004.07, losing 1.3%. The fear-gauge CBOE Volatility Index (VIX) increased 17% to close at 20.91. Decliners outnumbered advancers on the NYSE by a 2.24-to-1 ratio. On Nasdaq, a 2.25-to-1 ratio favored declining issues.
The Dow dipped 98.4 points to close in the red due to broad-based losses. Shares of Boeing (NYSE:BA) dipped 1.8% and weighed on the 30-stock index. The stock carries a Zacks Rank #3 (Hold). You can see Original post
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