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Sep 24, 2018

Before the bell: US futures come under pressure, as fresh trade tariffs take effect


Alexandra Gibbs


U.S. stock index futures fell into negative territory ahead of Monday's open, as the trade war between the U.S. and China escalated with further tariffs.
Around 5:30 a.m. ET, Dow futures slipped 41 points, indicating a negative open of -60.50 points. Futures on the S&P 500 were lower, indicating a downbeat open of -6.77 points, while Nasdaq futures dropped, signaling an open of 40.07 points down.
Wall Street NYSE
Getty Images
The moves in pre-market trade come after the Dow Jones Industrial Average and S&P 500 hit record highs during the previous session on Friday.
The latest round of trade tariffs between the U.S and China commenced Monday, with Washington inflicting 10 percent of levied duties on $200 billion worth of Chinese goods; this is set to rise to 25 percent by year-end. China has retaliated, targeting duties on more than 5,000 American goods worth a total of $60 billion.
Coming up Monday, the Dallas Fed's Texas Manufacturing Outlook survey is scheduled to be released at 10:30 a.m. ET.
In the corporate space, investors will likely be digesting the news that Comcast outbid Twenty-First Century Fox on Saturday in a $39 billion takeover of U.K. broadcaster Sky, submitting a much higher bid in a three-round auction. On Monday, the U.K. broadcaster recommended its shareholders to accept an offer from Comcast.