FX.co ★ US Futures Sink on Trade War Escallation

U.S. equity futures continued to decline on Wednesday, prolonging the aggressive selloff seen in recent sessions following China's decision to increase tariffs on U.S. goods to 84% in response to the cumulative 104% imposed by the U.S. on Chinese goods. Futures linked to the S&P 500 and the Dow Jones Industrial Average dropped more than 1%, while Nasdaq 100 futures declined by 0.7%, reaching their lowest points in over a year. Additionally, China expanded its export control lists, intensifying the trade conflict between the world's two largest economies and reducing the likelihood of a trade agreement being reached. This development stands in stark contrast to actions taken by countries such as Japan, South Korea, and Vietnam, which have indicated a willingness to engage in discussions to reduce trade barriers. Major corporations were poised for a sharp decline across all sectors. Delta Air Lines saw a drop after withdrawing its guidance due to recession fears, AbbVie fell following President Trump's threats to impose tariffs on pharmaceuticals, and Walmart experienced a 1% decline after announcing plans to cut costs in response to the tariffs.