قالب وردپرس درنا توس
Home / Business / Dow Futures Drop More Than 100 Points Due to Trade War Concerns, Qualcomm Leads Tech Losses

Dow Futures Drop More Than 100 Points Due to Trade War Concerns, Qualcomm Leads Tech Losses



US. Stock index futures fell Wednesday as concerns over trading increased, while declines in qualcomm and retail stocks depressed market sentiment.

At around 8:30 ET, the Dow Jones Industrial Average futures fell 123 points, a drop of 119 points on the opening. Futures on the S & P 500 and Nasdaq 100 were also lower.

Continuing trade warfare and restrictions on Chinese telecommunications giants Huawei have led to a reconsideration of southern China's economic relations with the US to rethink China Morning Post.

The report states that China is still open to resuming trade talks, but added that government advisors are highlighting the risks of sourcing supplies from the US in the course of the trade war.

President Donald Trump followed with his threat to increase tariffs on Chinese goods worth $ 200 billion from 1

0% to 25% earlier this month. China responded immediately, raising tariffs on US goods worth $ 60 billion up to 25 percent. Finance Minister Steven Mnuchin told CNBC Ylan Mui on Wednesday that US officials have not yet scheduled talks in Beijing.

In the meantime, Qualcomm shares in the advance fell 11% after a US judge ruled that the chipmaker violated antitrust laws by illegally suppressing cell phone chip competition. The news pushed the VanEck Vectors Semiconductor ETF (SMH) down 1.9%.

Qualcomm shares were under pressure throughout the month, down 9% in May.

The US has recently blacklisted Chinese telecommunications giant Huawei in a trade restricting its ability to do business in America. Some of these restrictions, however, were relaxed on Monday. The relief over Washington's easing of curbs over Huawei helped boost US stocks in the previous session.

"This, in our view, will weaken the US Huawei ban and give China leverage in dealing with the G-20," said Dan Ives, an analyst with Wedbush Securities, in an e-mail in which he referred to the verdict. "Qualcomm will be shocked by this FTC decision as Huawei, as the most important US 5G arms dealer, is increasing leverage on 5G."

Retailers were also under pressure after quarterly results from companies in the industry were released. Lowe's fell more than 8% as earnings were weaker than expected. Meanwhile, Nordstrom lost almost 11% as quarterly results and revenues failed to meet expectations.

The goal was the bright spot among the retailers. The company's stock rose more than 7% as earnings and sales exceeded analysts' expectations. Same-store sales, a key measure for retailers, also exceeded estimates.

In the meantime, investors are likely to follow closely the release of the US Federal Reserve's minutes. The Federal Reserve is expected to provide insights into the May 1 meeting when policymakers left interest rates unchanged with little appetite for early adjustment. The voting member of the central bank's policy-making body said the Fed may have had interest rates last year raised too much. "Prices in the US are currently in a good place and if we are a bit restrictive, I would say so," he told Bloomberg News. "I'm worried we might have overdone it with our rate hike in December, but I was pleased that the committee has turned."


Source link