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Trump vowed not to back down on imposing new
tariffs on Chinese imports unless Beijing "stops cheating our
workers", even as a Chinese delegation is set to hold talks in
Washington on Thursday and Friday to salvage a trade deal.
China has threatened to retaliate if tariffs on $200 billion
worth of Chinese goods increase to 25% on Friday, rekindling
worries of a global economic slowdown and pushing investors to
seek safety in assets such as government bonds and the Japanese
yen.
The S&P 500 is set to extend a three-day losing streak that has
pulled it 2.6% below the record high of 2,954.13 hit last week.
Trade-sensitive industrial bellwethers Boeing Co and Caterpillar
Inc dropped 0.7% in premarket trading on Thursday.
At 7:11 a.m. ET, Dow e-minis were down 163 points, or 0.63%. S&P
500 e-minis were down 18.25 points, or 0.63% and Nasdaq 100
e-minis were down 59.25 points, or 0.77%.
Chipmakers such as Micron Technology Inc, Advanced Micro Devices
Inc and Nvidia Corp fell between 1.2% and 2.5%. The broader
Philadelphia Semiconductor index has declined almost 5% so far
this week.
The sector, which is heavily reliant on China for revenue, was
also pressured by a modest profit growth forecast from Intel
Corp.
In a bright spot, Tapestry Inc jumped 12.7% after the company
beat quarterly profit estimates and announced a $1 billion share
buyback program.
On the data front, a report from the Commerce Department at 8:30
a.m. ET, is expected to show trade deficit having widened to
$50.2 billion in March from $49.4 billion in February.
The Labor Department is scheduled to release producer price
index for final demand, which is expected to have edged up 0.2%
in April after rising 0.6% in March.
(Reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru;
Editing by Sriraj Kalluvila)
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