Stocks poised to start the week lower as trade tensions persist

Stocks poised to start the week lower as trade tensions persist

U.S. stocks looked set to fall on Monday as souring U.S.-China trade relations continued to weigh on sentiment throughout global markets.

How are major benchmarks faring?

Dow Jones Industrial Futures fell 104 points, or 0.4%, lower at 25,676, those for the S&P 500 declined 13.50 points, or 0.5%, at 2,848.50, while Nasdaq-100 futures retreated 78.25 at 7,433.75, a fall of 1%.

On Friday, the Dow DJIA, -0.38% slid 98.68 points, or 0.4%, to 25,764 and the S&P 500 index SPX, -0.58% lost 16.79 points, or 0.6%, to 2,859.53. The Nasdaq Composite Index COMP, -1.04% declined 81.76 points, or 1%, to 7,816.28.

The Dow shed 0.7% for the week, bringing its weekly losing streak to four, the longest since May 2016. The S&P 500 fell 0.8% on the week while the Nasdaq dropped 1.3%.

What’s driving the market?

Sino-American trade tensions continued to face apparent escalation, with shares of chip makers taking it on the chin as U.S. technology companies have begun to comply with the White House’s ban on China’s Huawei Technologies Inc.

Bloomberg News reported Sunday that Xilinx XLNX, -4.78% XLNX, -4.78% and other U.S. chip makers, including Intel Corp INTC, -2.07% Qualcomm Corp.QCOM, -3.91%  and Broadcom Inc. AVGO, -2.93%  have frozen the supply of critical software and hardware components to Huawei.

What are strategists saying?

“Market volatility continues to stem from announcements and interpretations of what is going on in trade disputes between the US and its trading partners, but principally China,” wrote Jasper Lawler, head of research at London Capital Group, in a daily research note.

Which data and Fed speakers are ahead?

A reading of the Federal Reserve’s National Activity Index is due at 8:30 a.m. Eastern Time.

Atlanta Federal Reserve Bank President Raphael Bostic is due to speak at the Annual Financial Markets Conference held by the Atlanta Federal Reserve Bank in Amelia Island, FL. at 8:50 a.m.

Philadelphia Federal Reserve Bank President Patrick Harker will speak at 9:30 a.m. at the 65th Anniversary Conference in Boston.

New York Federal Reserve Bank President John Williams and Federal Reserve Vice Chair Richard Clarida will both participate in the “Fed Listens” roundtable discussion on monetary policy strategy and tools at 1 p.m.

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