The major U.S. equity markets look to stem Monday’s financial carnage, pointing to a higher open with stocks recouping a portion of the prior session’s losses.
Dow Jones industrial futures are higher by 0.9 percent, S&P 500 futures are also gaining 0.9 percent and Nasdaq futures adding 1.2 percent.
The Dow Jones Industrial Average fell 767.27 points, or 2.9 percent, to 25717.74, notching its biggest one-day percentage drop since December. The bloodbath continued with the S&P 500 shedding 3 percent to 2844.74 and the Nasdaq Composite declined 3.5 percent to 7726.04. All three major U.S. indexes are now virtually even with where they were a year ago.
|I:DJI||DOW JONES AVERAGES||25717.74||-767.27||-2.90%|
|I:COMP||NASDAQ COMPOSITE INDEX||7726.039511||-278.03||-3.47%|
The stock-market declines, which have extended for six straight sessions, began last week after President Trump said he would extend tariffs to almost all Chinese imports. Selling accelerated Monday after the Chinese yuan dropped beyond the level of seven to the dollar,
Trump responded on Twitter, accusing China of engaging in currency manipulation.
All ten of the S&P’s sectors lost ground with large-cap tech, consumer discretionary and healthcare stocks getting hit the hardest. Apple, Google and Amazon all taking a hit, along with trade-sensitive names including Boeing, Caterpillar and 3M.
Asian stocks followed Wall Street with losses on Tuesday while European markets traded higher after China let its currency sink further and halted purchases of U.S. farm goods, fueling fears about global damage from its trade war.
Markets in Shanghai, Tokyo and Hong Kong closed lower.
Tuesday’s U.S. earnings parade features the only Dow company reporting this week, entertainment giant Disney. Investors will also hear from we’ll hear from car rental giant Hertz Global.