Dow Jones is falling 100 points
Dow futures traded solidly lower on Tuesday, pointing to a downbeat session for the major benchmarks, as investors reassess a weekend detente in tariff tensions between the US and China.
How are the benchmarks faring?
Dow Jones Industrial Average futures YMZ8, -0.44% dropped 139 points, or 0.5%, to 25,707, while S&P 500 futures ESZ8, -0.35% fell 12.45 points, or 0.5%, to 2,778.25. Nasdaq-100 futures NQZ8, -0.53% dropped 45.25 points, or 0.6%, to 7,013.
What’s driving the market?
Skepticism surrounding the ability of the US and China to reach a deal to avoid new or expanded bilateral tariffs is on the rise as investors focused on the lack of concrete concessions made by China at the last weekend’s G-20 meeting in Argentina, where President Trump and Chinese leader Xi Jinping met face to face in an attempt to ease tensions in trade.
While the United States agreed on a 90-day moratorium on threats to increase tariffs on more than $200 billion in annual imports from 10% to 25%, the comparison of official statements from Chinese and US officials suggests there may be a long way ahead of two camps are able to reach an agreement that can ease tensions more permanently.
What stocks are in focus?
Apple Inc. AAPL, -1.99% shares are dropping more than 3% in premarket action, after the stock was one of the leaders of Monday’s rally, when it rose 3.5%.
What are market participants saying?
“The boost to global risk appetite following the US-China trade “ceasefire” seems to have been short-lived. Even though US stock markets closed higher, they did surrender a decent part of their gains late in the session, and futures tracking the likes of the S&P 500 are pointing to a notably lower open today,” wrote Marios Hadjikyriacos, investment analyst at U.k. brokerage XM.com.