Stock futures lower on recession worries

[August 28, 2019]  By Akanksha Rana

(Reuters) - U.S. stock index futures fell on Wednesday after moves in the U.S. bond market returned investors to worrying about the risk of recession as a bruising U.S.-China trade war drags on.

The U.S. yield curve inverted on Tuesday to levels not seen since 2007, triggering a selloff on Wall Street.

Shares of banks, which typically come under pressure in a low interest rate environment, fell in premarket trading, with Bank of America Corp <BAC.N>, Citigroup Inc <C.N>, Goldman Sachs Group Inc <GS.N> and JPMorgan Chase & Co <JPM.N> down nearly 1%.

The recent bout of selling has dragged the benchmark S&P 500 <.SPX> 5.5% away from a record high hit in late July.

Markets have been roiled by persistent trade tensions after Beijing announced retaliatory tariffs on U.S. goods and President Donald Trump ordered the U.S. companies to look at alternatives to doing business with China.

Investors are also awaiting the release of the government's closely watched monthly jobs report and manufacturing data next week to gauge the pace of interest rate cuts.

A trader works on the trading floor at the New York Stock Exchange (NYSE) at the opening of the market in New York City, U.S., August 26, 2019. REUTERS/Andrew Kelly

At 7:34 a.m. ET, Dow e-minis <1YMcv1> were down 65 points, or 0.25%. S&P 500 e-minis <EScv1> were down 5.5 points, or 0.19% and Nasdaq 100 e-minis <NQcv1> were down 20.5 points, or 0.27%.

Among other stocks, Tiffany & Co <TIF.N> rose 3% after the luxury retailer beat quarterly profit estimates as it cut marketing spending.

Shares of Hewlett Packard Enterprise Co <HPE.N> jumped 4.3% after it beat profit estimates and raised its 2019 adjusted profit forecast.

Autodesk Inc's <ADSK.O> slumped 12.2% after the AutoCAD software maker cut its full-year earnings forecast.

(Reporting by Akanksha Rana in Bengaluru; Editing by Anil D'Silva)

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