🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

U.S. Futures Drop Ahead of Trade Deadline, Fed Meeting

Published 12/10/2019, 06:48 AM
Updated 12/10/2019, 06:49 AM
© Reuters.
XAU/USD
-
DX
-
GC
-
ESZ24
-
CL
-
1YMZ24
-
NQZ24
-
US10YT=X
-

Investing.com - U.S. stock futures pointed to a lower open on Wall Street on Tuesday as investors turned more cautious ahead of the Federal Reserve’s final meeting of the year and the Dec. 15 deadline for fresh U.S. tariffs on Chinese imports to kick in.

The blue-chip Dow futures were down 105 points, or 0.4% by 06:48 AM ET (11:48 GMT), while futures on the S&P 500 and the Nasdaq 100 also fell.

The losses came after Wall Street's main indexes ended lower on Monday as hopes for at least an interim trade deal ebbed.

Investors are focusing on global trade development with just five days to go before Washington is due to impose a fresh tranche of tariffs on imports from China.

The two sides are negotiating a preliminary deal aimed at de-escalating their 17-month dispute, but there has been near-complete silence from both governments on the issue in recent days, and the void has been filled by reports of both Beijing and Washington taking administrative steps to squeeze each other's companies: China has ordered the removal of all U.S. computers and software from government agencies, while the U.S. is reportedly drafting a bill that would exclude transportation groups CRRC and BYD from federal contracts.

Analysts said markets are still hoping for a delay in the deadline, while expecting more positive gestures from both sides.

Traders were also looking ahead to the Fed meeting, starting later Tuesday. The central bank is expected to hold steady at the conclusion of its meeting on Wednesday after cutting rates three times this year to shield the U.S. economy from a global slowdown.

The economic calendar is light on Tuesday, with only nonfarm productivity data and unit labor costs due at 8:30 AM and the Redbook retail survey due 25 minutes later.

The NFIB small business optimism index, released earlier, rose to a four-month high of 104.7, beating expectations.

Away from equities, the U.S. dollar index against a basket of currencies edged down to 97.50, while the yield on the 10-year Treasury was last trading at 1.80%.

In commodities, gold futures were up $5.95 at $1,470.95 a troy ounce, while crude oil slid 0.3% to $58.69 a barrel.

--Reuters contributed to this report

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.