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Stocks - U.S. Futures Fall as Trade Talks Fail to Halt Tariffs

Published 2018-11-16, 06:47 a/m
© Reuters.
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Investing.com – U.S. futures were lower on Friday, as a imminent deal between the U.S. and China remains unlikely.

The S&P 500 futures fell 14 points or 0.51% to 2,720.5 as of 6:45 AM ET (11:45 GMT) while Dow futures were down 99 points, or 0.39%, to 25,206.0. Meanwhile tech heavy Nasdaq 100 futures decreased 81 points, or 1.17%, to 6,834.5.

Hopes of a trade deal between the U.S. and China receded after a White House official told Reuters on Thursday that China’s written response to U.S. demands for trade reform are unlikely to lead to a deal in the near future. U.S. President Donald Trump and Chinese President Xi Jinping are expected to talk about trade disagreements at the G20 summit later this month.

U.S. Trade Representative Robert Lighthizer denied a report that he said another round of tariffs on Chinese imports had been put on hold as the two nations pursue talks.

“The plan for the tariffs ... has not changed at all. Any reports to the contrary are incorrect," a spokesperson for Lighthizer’s office said in a statement.

Tariffs on $200 billion of Chinese goods are set to increase to 25% from 10% on Jan. 1.

Technology stocks were under pressure in premarket trading, after Nvidia forecast a fall in chip sales for the holiday quarter as demand for Apple (NASDAQ:AAPL) products waned. Shares of NVIDIA Corporation (NASDAQ:NVDA) plunged 17%, while Apple dipped 0.89% and Advanced Micro Devices Inc (NASDAQ:AMD) fell 5%.

Facebook (NASDAQ:FB) was down 1.10% amid pressure over how the social media network manages community standards and posts. Amazon.com (NASDAQ:AMZN) lost 1.44% while Tesla (NASDAQ:TSLA) fell 0.76%.

Elsewhere, General Electric (NYSE:GE) rose 0.37% while Pacific Gas & Electric Co (NYSE:PCG) rebounded 33%.

In commodities, gold futures surged 1.45% to $1,216.60 a troy ounce while crude oil futures increased 1.58% to $57.35 a barrel. The U.S. dollar index which measures the greenback against a basket of six major currencies, was up 0.09% to 96.88.

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