Futures fall as tariff date looms
US stock index futures slipped on Tuesday as investors stayed on the sidelines ahead of a looming US tariff deadline on Chinese goods that could possibly derail any progress made in trade talks between the world’s top two economies.
Wall Street is focused on December 15, when the next round of US levies on Chinese imports such as mobile phones and toys is scheduled to take effect.
Hopes of a partial US-China trade deal have helped the three major US stock indexes scale record levels in the last month.
But conflicting headlines have led to uncertainty in the market, with investors worried about a “phase one” agreement getting potentially delayed as the two sides continue to wrangle over key details.
“Sentiment has been a shade weaker over the last 24 hours albeit on very little news to get excited about,” Unicredit analysts wrote in a note to clients.
“After so many turns in sentiment and indications, investors are waiting for a final decision.”
Market participants will also keep a close watch on the Federal Open Market Committee’s two-day policy meeting, which ends on
Wednesday, for cues on its 2020 economic outlook.
At 7:10 a.m. ET, Dow e-minis were down 105 points, or 0.38%. S&P 500 e-minis were down 10 points, or 0.32% and Nasdaq 100 e-minis were down 33.5 points, or 0.4%.
Among stocks, Netflix Inc fell 2.3% in premarket trading after Needham downgraded the streaming service’s shares to “underperform.”
Masco Corp rose 1.2% after KeyBanc raised its rating on the home improvement and building product maker’s shares to “overweight.” (Reuters)