Stock futures fell on Monday, as investors shunned risky bets on fears that a drawn-out trade war between the United States and China would significantly hamper global growth.
The three main indexes ended marginally lower last week, wrapping up five days of high-volume trading marked by wild swings, as investors feared that a slide in China’s yuan would expand the scope of the trade war to include currencies.
President Donald Trump said on Friday he was not ready to make a deal with China, pouring cold water on any hopes that the dispute would end soon.
Highlighting the fallout of the trade dispute on global growth, a survey by Germany’s Ifo economic institute on Monday showed the economic outlook for the third quarter has deteriorated worldwide.
Trade-related worries have been a major drag on the benchmark S&P 500, which has slipped 3.7 percent from its all-time high hit in July.
Ahead of the opening bell, Dow Jones futures were down 194 points, the S&P 500 was down 0.6 percent, and the Nasdaq was down 0.67 percent.
Investors seeking safety in perceived safe havens pushed the Japanese yen and U.S. government bond prices higher.
The so-called FAANG group — Facebook, Amazon, Apple, Netflix, and Google’s Alphabet — which led the market rally this year, slipped as much as 1.3 percent in premarket trading.
Chipmakers, which depend on China for a large portion of their revenue, were also under pressure. Micron, Nvidia, and Advanced Micro Devices all fell between 0.6 percent and 1.5 percent.