Advertisment
U.S. stock index futures fell sharply ahead of Monday's open amid heightened trade tensions between the U.S. and China.
Futures for the Dow Jones Industrials crumbled 218 points, or 0.9%, to 24,891.
S&P 500 futures dropped 20.25 points or 0.7%, to 2,764.25, while futures for the NASDAQ composite index gave back 60.75 points, or 0.8%, to 7,293.50
Shares of Boeing and Caterpillar both fell 1% in the pre-market. The two companies are seen as bellwethers for global trade concerns given their large amounts of overseas business.
On Friday, President Donald Trump announced that the U.S. would inflict tariffs that would impact up to $50 billion worth of Chinese goods.
According to Washington, the action comes "in light of China's theft of intellectual property and technology and its other unfair trade practices."
Consequently, the move triggered China to retaliate, with Beijing announcing its own selection of duties on U.S. goods. The Chinese State Council's commission on tariffs and customs stated that a 25% tariff would occur in early July on $34 billion of U.S. products.
In data, the business leaders' survey was due out at 8:30 a.m. ET, followed by the NAHB/Wells Fargo Housing Market Index at 10 a.m. ET.
In Japan, the Nikkei 225 slipped 0.8% Monday. Markets in Hong Kong were shuttered for holiday. European markets posted substantial losses.
Oil prices fell six cents to $65.00 U.S. per barrel.
Gold prices climbed $4.60 to $1,283.10 U.S. an ounce.
