Markets Set to Take Tumble on Qualcomm Ruling

U.S. stock index futures fell on Wednesday as declines in Qualcomm and the broader retail sector dampened market sentiment.

Futures for the Dow Jones Industrial Average slipped 95 points, or 0.4%, to 25,780

Futures for the S&P 500 faded 12.25 points, or 0.4%, at 2,853.75

NASDAQ futures lost 49.25 points, or 0.7%, to 7,414.75

Qualcomm shares fell 11% in the pre-market after a U.S. judge ruled the chipmaker violated antitrust law by unlawfully suppressing competition in the cellphone chip space.

Shares of Qualcomm have been under pressure all month, falling 9% in May, as tensions China and the U.S. increase on the trade front. President Donald Trump followed through with his threat to increase tariffs on $200 billion in Chinese goods from 10% to 25% earlier this month. China immediately responded by upping the tariffs on $60 billion of U.S. goods to as high as 25%.

The U.S. recently added Chinese telecoms giant Huawei to a trade blacklist, which curbs its ability to do business in America. However, some of those restrictions were eased on Monday. Relief over Washington’s relaxation of curbs against Huawei helped boost U.S. stocks in the previous session.

Retailers were also under pressure after the release of quarterly results from companies in the sector. Lowe’s fell more than 8% on weaker-than-expected earnings. Nordstrom, meanwhile, dropped nearly 11% as its quarterly earnings and revenue missed expectations.

Target was the bright spot among retailers. The company’s stock rose more than 7% as its earnings and revenue topped analyst expectations. Same-store sales, a key metric for retailers, also surpassed estimates.

Overseas, the Nikkei 225 peeped up 0.1% Wednesday, while in Hong Kong, the Hang Seng index inched up 0.2%.

Oil prices fell 64 cents to $62.49 U.S. a barrel.

Gold prices gained $2.70 to $1,295.90 U.S. an ounce.