Fred Imbert, Elliot Smith
Dow Jones Industrial Average indicated a loss of 71 points at the open. S&P 500 and Nasdaq 100 futures also pointed to declines at the start of Thursday’s session.
The Institute for Supply Management is scheduled to release its nonmanufacturing index reading for September at 10 a.m. Earlier in the week, ISM posted its weakest reading on the manufacturing sector in more than 10 years, sparking fears of an economic recession.
Those fears led the Dow to lose more than 800 points over the last two sessions after losing nearly 500 points on Wednesday.
Some market experts have suggested that the protracted trade war between the U.S. and China is beginning to impact growth. Delegations from Washington and Beijing are due to meet next week in the hope of finding a consensus.
In other trade news, the White House plans to widen its combative trade policy with 10% tariffs on European-made Airbus planes and 25% duties on French wine, Scotch and Irish whiskies, along with cheese from across the continent.
The move comes after the World Trade Organization ruled in favor of the tariffs after years of wrangling over European government subsidies for aircraft maker Airbus. The EU has suggested it will retaliate against U.S. tariffs.
In corporate news, Tesla deliveries missed Wall Street estimates on Wednesday, sending its shares nearly 5% lower in trading after the bell.
PepsiCo and Constellation Brands will report earnings before the bell, with Costco reporting after the session’s close.
Federal Reserve Vice Chair Randal Quarles is set to deliver a speech at 8:30 a.m. ET to the European Banking Federation Summit in Brussels.