Futures slide on renewed U.S.-China tensions

[May 04, 2020]  By Shreyashi Sanyal

(Reuters) - U.S. stock index futures slid on Monday on growing tensions between Washington and Beijing over the origin of the novel coronavirus.

U.S. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the coronavirus emerged from a Chinese laboratory, but did not dispute U.S. intelligence agencies' conclusion that it was not man-made.

Pompeo's statement comes after Wall Street started May on a grim note as President Donald Trump revived a threat of new tariffs against China in response to the COVID-19 pandemic.

The S&P 500 index's <.SPX> 29% recovery from its March lows stands to be tested as investors weigh renewed trade tensions and the health crisis with the gradual reopening of businesses.

Shares of Delta Air Lines <DAL.N>, American Airlines Co <AAL.O>, Southwest Airlines Co <LUV.N> and United Airlines <UAL.O> slumped between 6.6% and 9.5% in premarket trading as Berkshire Hathaway Inc <BRKa.N> sold its entire stakes in the four-largest U.S. airlines in April.

At 6:14 a.m. ET, Dow e-minis <1YMcv1> were down 254 points, or 1.08%. S&P 500 e-minis <EScv1> were down 24.25 points, or 0.86% and Nasdaq 100 e-minis <NQcv1> were down 63.25 points, or 0.73%.

Investors are also awaiting factory orders data for March, which is expected to show a sharp decline.

The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 26, 2020. REUTERS/Jeenah Moon

SPDR S&P 500 ETFs <SPY.P> were down 1%.

The S&P 500 index closed down 2.80% at 2,830.71 on Friday.

(Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru; Editing by Saumyadeb Chakrabarty)

[© 2020 Thomson Reuters. All rights reserved.]

Copyright 2020 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  Thompson Reuters is solely responsible for this content.