As the US trade-war against China escalates to unprecedented levels with the Trump administration announcing extra tariffs on $200 billion of imports from China, US stock futures are starting to slide.
Futures on Wednesday for the S&P 500 are down 0.7 per cent while those for the Dow Jones Industrial Average and the Nasdaq 100 both dropped 0.8 per cent. The Wednesday numbers are all an hour before the opening bell, so by the end of the day a sharper decline might be looming.
The decline could be part due to a sharp selloff in Chinese and Hong Kong stocks on Wednesday. European stocks posted smaller drops, although those more exposed to China’s economy and the trade dispute such as metals saw a sharper decline.
US chipmakers were among the biggest losers in pre-market trade. Advanced Micro Devices, Nvidia and Micron Technology were all down more than 1 per cent amid fears that China would retaliate by banning these companies, whose memory…