Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks - U.S. Futures Fall as Tensions With Huawei, China Weigh

Published 17/01/2019, 12:17
Updated 17/01/2019, 12:19
© Reuters.

© Reuters.

Investing.com – U.S. futures were lower on Thursday as Sino-U.S. tensions increased after U.S. lawmakers introduced bills that would ban the sale of American chips to Chinese companies.

The proposed law drew the ire of China and could put trade talks between the two largest economies in the world in jeopardy.

The S&P 500 futures fell 12 points or 0.46% as of 7:17 AM ET (12:17 GMT) while Dow futures slipped 112 points, or 0.46%. Meanwhile tech heavy Nasdaq 100 futures decreased 49 points, or 0.32%.

The proposed bills would ban the sale of U.S. chips to Huawei and other Chinese companies that violate U.S. sanctions or export control laws. It emerged late Wednesday that Huawei is also under investigation for allegations that it stole trade secrets.

Chinese Foreign Ministry spokeswoman Hua Chunying called the U.S. legislation "hysteria,” prompting worry over possible retaliation.

"China is unlikely to shrug this off which is creating a risk-off environment. Signs of retaliation from China could see stocks sink further," said Jasper Lawler, head of research at London Capital Group.

On the earnings front, Fastenal (NASDAQ:FAST) and PPG Industries (NYSE:PPG) are set to report in the morning, while American Express (NYSE:AXP), JB Hunt (NASDAQ:JBHT), and Netflix (NASDAQ:NFLX) are expected to report after the closing bell.

Morgan Stanley (NYSE:MS) slumped over 2% after its earnings came in lower than expected.

Apple (NASDAQ:AAPL) fell 0.8% in premarket trading, while Microsoft (NASDAQ:MSFT) dipped 0.6% and semiconductor company Micron (NASDAQ:MU) slipped 0.6%. Tesla (NASDAQ:TSLA) was down 0.5% after news that it is ending its customer referral program to help with the cost of its Model 3 vehicle. Texas Instruments (NASDAQ:TXN) dipped 2%, while AT&T (NYSE:T) inched down 0.5%.

Elsewhere, Pacific Gas & Electric Co (NYSE:PCG) gained 2.7%.

In economic data, weekly jobless claims come out at 8:30 AM ET (13:30 GMT), along with the Philly Fed Manufacturing index.

In commodities, gold futures inched up 0.05% to $1,294.45 a troy ounce, while crude oil fell 1.3% to $51.63 a barrel. The U.S. dollar index, which measures the greenback against a basket of six major currencies, was flat at 95.68.

-Reuters contributed to this report.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.