By Yun Li, CNBC–
- At around 04:55 a.m. ET, Dow futures dipped 98 points, indicating a negative open of more than 37 points.
- Futures on the S&P and Nasdaq were both slightly lower.
- Market focus is largely attuned to global trade developments, after the U.S. delayed tariffs on some Chinese imports in the previous session.
U.S. stocks were set to open slightly lower Wednesday morning.
At around 04:55 a.m. ET, Dow futures dipped 98 points, indicating a negative open of more than 37 points. Futures on the S&P and Nasdaq were both slightly lower.
Market focus is largely attuned to global trade developments, after weaker-than-expected data in China deepened the gloom in the world’s second largest economy.
Official data published Wednesday showed growth of China’s industrial output slowed to 4.8% in July from a year earlier, marking the latest sign of faltering demand in the country.
The world’s two largest economies have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
The data after the U.S. moved to delay tariffs on some Chinese imports in the previous session.
The United States Trade Representative announced Tuesday that certain products including clothing and cellphones were being removed from the tariff list based on “health, safety, national security and other factors” and will not face additional tariffs of 10%. Other tariffs will be delayed to Dec. 15 from Sep. 1 for certain articles, it said.
President Donald Trump said Tuesday that the move was designed to avoid any potential impact on holiday shopping ahead of Christmas season. He added China would very much like to make a trade deal.
Wall Street stocks soared shortly after the announcement, with the Dow jumping as much as 529 points before settling to finish the day 372 points higher.
China’s Commerce Ministry said Vice Premier Liu He had spoken by phone with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Tuesday and they agreed to talk again in two weeks.
Data, earnings On the data front, import prices for July will be released at around 8:30 a.m. ET.
In corporate news, Tencent, Macy’s and Canada Goose are among some of the companies expected to report their latest quarterly results before the opening bell.
Cisco Systems, Canopy Growth and NetApp are some of the companies set to report their latest results after market close.