Stock futures plunge, with the Dow heading for a 600 point drop, after China announces new tariffs
Around 6:20 a.m. ET, Dow futures indicated a drop of more than 600 points. The Nasdaq and the S&P 500 futures also both indicated heavy losses at the open.
China has announced brand-new tariffs on 106 U.S. products, including cars, whisky, and soybeans.
In earnings, CarMax, Acuity Brands and Lennar are all scheduled to publish their latest financial reports.
U.S. stock index futures tumbled ahead of Wednesday's open, as concerns over a potential trade war between the U.S. and China intensified.
Around 6:20 a.m. ET, Dow futures indicated a drop of more than 600 points at the start of trading in New York. The Nasdaq and the S&P 500 futures also indicated heavy losses at the open for their respective markets.
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Traders work on the floor of the New York Stock Exchange (NYSE).
The moves in pre-market trade come as China announced brand-new tariffs on 106 U.S. products, including cars, whiskey, aerospace and defense, and soybeans.
Automakers were down sharply, with Ford and General Motors off about 4 percent. Boeing was also slammed, down more than 7 percent.
The move comes less than a day after President Donald Trump issued a list of Chinese imports that the U.S. administration aims to target as part of a crackdown on what the president sees as unfair trade practices.
U.S. futures extended losses following the announcement, with worries over technology and trade already putting markets on edge.
Wednesday's pre-market trade paints a different picture to that of Tuesday's session, when stocks on Wall Street rose sharply to finish the day on a positive note. The Dow Jones industrial average closed almost 400 points higher as technology rebounded from sharp losses seen in Monday's sessions.
Ahead of Friday's nonfarm payrolls, investors will digesting the latest economic news, including the ADP National Employment Report at 8:15 a.m. ET and services purchasing managers' index (PMI) at 9:45 a.m. ET.
Meantime at 10 a.m. ET, non-manufacturing ISM report on business is due as well as factory orders. Mortgage applications will be released at 7 a.m. ET as usual.
On the earnings front, CarMax, Acuity Brands and Lennar are all scheduled to publish their latest financial reports.
Meantime, investors will be keeping a close eye on Spotify, after it debuted on the public market Tuesday. The music streaming platform closed up 13 percent, from its reference price.
On the central banking front, the Federal Reserve Bank of Chicago's two-day annual risk conference begins. Meantime, two speeches by Fed officials are due to take place, one from St. Louis Fed President James Bullard in Arkansas, and one from Cleveland Fed President Loretta Mester in Ohio.
No major auctions by the U.S. Treasury are due to take place Wednesday.
