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Home / Business / Dow futures fall more than 100 points on more trade war concerns, Qualcomm leads tech lower

Dow futures fall more than 100 points on more trade war concerns, Qualcomm leads tech lower



US Stock Exchange futures fell on Wednesday when trade concerns increase while declining in Qualcomm and dealer stocks pulled down market sentiment.

around 8:30 ET, Dow Jones Industrial Average futures were down 123 points, indicating a decline of 119 points on the open. The future of S & P 500 and Nasdaq 100 was also lower.

The ongoing trade war – as well as restrictions on Chinese telecom giant Huawei – has led China to reconsider its entire economic relationship with the United States, according to a South China Morning Post report.

The report states that China is still open to starting trade negotiations, but adds that government advisers highlight the risk of buying supplies from the US as the commercial war goes on.

President Donald Trump followed through with his threat of raising $ 200 billion in Chinese goods tariffs from 1

0% to 25% earlier this month. China reacted immediately by quoting US $ 60 billion of US goods at as high as 25%. Treasury Secretary Steven Mnuchin told CNBC's Ylan Mui on Wednesday that US officials had not yet scheduled talks in Beijing.

At the same time, Qualcomm shares fell 11% in the premarket after an American judge ruled the chipmaker who violated the antitrust law by illegal suppression of competition in the mobile phone gap. The news reduced the VanEck Vectors Semiconductor ETF (SMH) by 1.9%.

Stocks of Qualcomm have been under pressure all month and fall 9% in May.

The United States recently added Chinese telecom giant Huawei to a trading blacklist, which strengthens its ability to do business in America. But some of these restrictions were relieved on Monday. Relief of Washington's relaxation of the edges against Huawei helped boost US stocks in the previous session.

"This will weaken the Huawei ban of the United States in our opinion and give leverage to China in the war game on its way into G20 talks," Wedbush Securities analyst said in an e-mail referring to the decision. hit with this FTC government as the main US 5G merchant, Huawei lever strengthened at 5G. "

Dealers were also under pressure after quarterly results from companies in the sector were released. Lowe has fallen more than 8% on weaker than Expected earnings Nordstrom, meanwhile, fell almost 11% when quarterly revenue and revenue lost expectations

Target was the bright spot among retailers.The company's stock rose more than 7% as earnings and revenues topped analysts' expectations, same store sales, key statistics For resellers, estimates also exceeded.

Meanwhile, investors are probably closely monitoring the release of the US central bank's meeting meetings. expected to give insight into the meeting on May 1, when policemen left interest rates unchanged and signaled little appetite to adjust them anytime soon.

Prior to the release of the protocol, St. Louis Fed President James Bullard, a member of the Central Bank's Political Affairs Committee, said the Fed may have raised rates too much last year. "The prices are in a good place in the US right now, if anything we're a little restrictive I want to say," he told Bloomberg News. "I am concerned that we may be slightly exaggerated with our December interest rate increase, but I was glad the committee fluctuated."


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