U.S. stock index futures were slightly lower Wednesday morning, as ongoing trade tensions fueled worries about global growth outlook. At around 03:20 a.m. ET, Dow futures dropped 136 points, indicating a negative open of more than 112 points. Futures on the S&P and Nasdaq were both seen slightly lower.
Risk aversion has increased in recent days, with disappointing economic data in major economies reawakening fears of a global recession.
It comes at a time when the world’s two largest economies are locked in a protracted trade dispute.
Washington and Beijing have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.
Italy’s dispute with the European Commission over its budget, wins for europskeptic parties in EU elections and political turmoil in Austria and Greece have all added to the gloomy market outlook.
On the data front, the Richmond Fed manufacturing survey for May is expected at around 10:00 a.m. ET, with Dallas Fed services data set to follow slightly later in the session.
In corporate news, Bank of Montreal, 58.com, and Abercrombie & Fitch are some of the companies set to report their latest results before the opening bell.
Palo Alto Networks, PVH, and Veeva Systems are set to publish their quarterly results after market close.