Fred Imbert, Silvia Amaro
At around 7:06 a.m. ET, Dow Jones Industrial Average futures fell 62 points, indicating a loss of 12 points at the open. S&P 500 and Nasdaq 100 futures also pointed to slight losses.
Industrial production in China increased by 5.4% in April on a year-over-year basis, notching the slowest pace of growth since May 2003. Economists polled by Refinitiv expected an expansion of 6.5%.
The slowdown in Chinese industrial production comes as trade tensions between China and the U.S. have reignited. Earlier this week, China hiked tariffs on $60 billion worth of U.S. goods. The move came after the U.S. raised levies on $200 billion worth of Chinese imports. The U.S. also raised the possibility of slapping tariffs on an additional $300 billion in goods from China.
President Donald Trump tweeted on Tuesday that the U.S. is in a “much better position now than any deal we could have made.”
The rising trade fears sent equities reeling to start off the week as the major indexes all fell more than 2% on Monday. Stocks rebounded on Tuesday, with the Dow posting its best day in a month.
Nonetheless, trade will remain a key focus for market participants. The U.S. president has until midnight Friday to decide whether to impose car tariffs on Europe.
On the data front, retail sales numbers are scheduled for release at 8:30 a.m. ET, alongside the May reading of the Empire State Manufacturing index. U.S. industrial production data is also set for release at 9:15 a.m. ET.
In terms of earnings, Macy’s, Cisco Systems and ZTO Express will report their latest results.