Dow futures drop on global trade, political concerns
Dow Jones Industrial Average futures dropped more than 200 points early Thursday as worries about the U.S.-China trade dispute intensified and concern that ongoing elections for the European Parliament could increase the number of populists in the body.
In addition, a public clash Wednesday between House Speaker Nancy Pelosi and President Trump dimmed prospects for a $2 trillion infrastructure bill, something that has been expected to boost shares of industrial corporations.
Futures for the Dow fell 239, or 0.93 percent, while futures for the S&P 500 were off 0.99 percent and for the Nasdaq Composite tumbled 1.37 percent.
Auto and tech stocks, both particularly trade sensitive, fell as investors watched voting for members of the European Parliament. Prospects that populist candidates will increase their representation in the body are believed to hearten eurosceptics and make cooperation among EU nations more difficult.
|I:DJI||DOW JONES AVERAGES||25776.61||-100.72||-0.39%|
|I:COMP||NASDAQ COMPOSITE INDEX||7750.842523||-34.88||-0.45%|
Meanwhile, the lack of a specific date for a resumption of Sino-American trade talks left Wall Street increasingly worried about the possibility that the trade conflict between the world’s two largest economies could last for months.
China’s Shanghai Composite closed down 1.36 percent, the Hang Seng fell 1.58 percent and Japan’s Nikkei 225 ended off 0.62 percent.
Britain’s FTSE 100 was decreased 1.3 percent, France’s CAC 40 retreated 1.67 percent and Germany’s DAX tumbled 1.83 percent.