Stock futures point lower as trade worries linger
(Reuters) - U.S. stock index futures slid on Wednesday on concerns that a worsening U.S.-China trade relationship could disrupt businesses and hurt corporate profits.
Futures pointed to a 0.4 percent opening loss for the S&P 500 .SPX, while China's Shenzhen-listed blue-chip index .CSI300 dropped 2.05 percent, adding to a 20 percent loss from its peak, venturing further into 'bear territory'.
An escalating trade dispute and tit-for-tat tariffs between the two largest economies have roiled global financial markets since early March, with the recent U.S. move to restrict Chinese investments in U.S. technology firms pushing the S&P 500 and Nasdaq .IXIC on Monday to their biggest percentage declines in over two months.
President Donald Trump on Tuesday endorsed a measured approach to limiting Chinese investments, saying a strengthened merger security review committee could protect sensitive American technologies. The rules are set to be unveiled on Friday.
China’s commerce ministry said on Wednesday it would assess the potential impact of the action on Chinese companies.
U.S.-listed shares of Chinese tech companies were the most active stocks in premarket trading. iQiyi (IQ.O) dropped 2.9 percent, JD.com (JD.O) fell 1.5 percent and Alibaba (BABA.N) was down 1.6 percent.
At 7:20 a.m. ET, Dow e-minis 1YMc1 were down 129 points, or 0.53 percent. S&P 500 e-minis ESc1 were down 12.25 points, or 0.45 percent and Nasdaq 100 e-minis NQc1 were down 57 points, or 0.8 percent.
Wall Street bounced back on Tuesday, with help from a two percent jump in oil prices, gains for technology and consumer discretionary stocks.
U.S. Commerce Department on Wednesday is expected to report that durable goods orders fell 1 percent in May after declining 1.6 percent in April. The data is due at 8:30 a.m. ET.
Conagra Brands (CAG.N) said it would buy Pinnacle Foods (PF.N) for about $8.1 billion in cash and stock. Conagra shares dropped 6.9 percent and Pinnacle Foods fell 4.8 percent after the widely anticipated deal announcement.
General Mills (GIS.N) fell 1 percent after the Cheerios cereal maker reported a 13 percent drop in quarterly profit.
Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta