FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 9, 2019. REUTERS/Brendan McDermid
(Reuters) – U.S. stock index futures dipped on Tuesday as weak economic data from China signaled slowing growth in the country, rekindling fears of global recession.
China’s producer price index fell 0.8% in August, the sharpest pace of decline in three years, as businesses slashed prices to cope with flagging demand amid a bruising trade war with the United States.
Shares of U.S. chipmakers, which generate a big chunk of revenue from China, were under pressure in premarket trading. Qualcomm Inc (QCOM.O), Intel Corp (INTC.O) and Applied Materials Inc (AMAT.O) fell between 0.6% and 1.1%.
The “FAANG” set of stocks were also lower, with Apple Inc (AAPL.O) dipping 0.2% ahead of an event where it is widely expected to unveil its latest iPhones. Details on its new video streaming service could also move shares of Netflix Inc (NFLX.O) and Walt Disney Co (DIS.N).
Declines in technology and healthcare stocks kept Wall Street subdued on Monday as investors held out for policy decisions from central banks on potential monetary easing.
The U.S. Federal Reserve is expected to cut interest rates by a quarter percentage point at its mid-September meeting, while the European Central Bank is likely to reduce deposit rates for the first time since 2016 later this week.
Among other stocks, Ford Motor Co (F.N) fell 3.2% after ratings agency Moody’s downgraded its bond rating to junk status on Monday.
Separately, the U.S. House Judiciary Committee laid out plans to hold hearings into the Justice Department’s decision to open an antitrust investigation into Ford and three other automakers.
At 6:55 a.m. ET, Dow e-minis 1YMcv1 were down 37 points, or 0.14%. S&P 500 e-minis EScv1 were down 5 points, or 0.17% and Nasdaq 100 e-minis NQcv1 were down 20 points, or 0.26%.
Reporting by Uday Sampath in Bengaluru; Editing by Saumyadeb Chakrabarty