Nasdaq 100 futures dropped 0.9% below fair value as Facebook (FB) traded lower and China-based NetEase (NTES) posted the index's heaviest early decline.
Futures for the Dow Jones industrial average dragged 0.7% lower, as blue chips traded flat to lower with Merck (MRK), JPMorgan (JPM) and Boeing (BA) at the bottom of the list. Futures for both the S&P 500 and the Russell 2000 small cap gauge traded 0.6% lower.
Markets were wary as the Trump administration prepared to possibly unveil Thursday what is expected to be upwards from $30 billion in fresh tariffs on Chinese-made goods. News reports said announcement of the tariffs, which are in addition to those imposed in February against China's steel and aluminum trades, could be delayed, and that the measures would not take effect immediately.
China's market dug in for a second day ahead of the expected trade sanctions. Hong Kong's Hang Seng index dropped 1.1%. The Shanghai Composite lost 0.5%. In Japan, Tokyo's market reopened from its one-day vernal equinox holiday with the Nikkei 225 jumping 1%.
Europe's markets showed steep losses as they braced for possible news on tariffs. In afternoon trade, Frankfurt's DAX and the CAC-40 in Paris were down more than 1.2% each. London's FTSE 100 was off 1%.
Beyond tariffs, Thursday's other economic news opened with first-time unemployment claims increasing a bit more than 1% to 229,000 in the week ended March 17, according to the Labor Department. Consensus estimates projected a downtick to 225,000 claims.
- Source, IBD
