U.S. stock futures slipped Tuesday ahead of a barrage of tech-sector earnings, with a Chinese regulatory crackdown casting an overhang over the market.
Futures on the Dow Jones Industrial Average
dropped 210 points;
Futures on the S&P 500
Futures on the Nasdaq 100
U.S. stocks on Monday closed at a record high for the second straight session. The Dow Jones Industrial Average
and the S&P 500
each rose 0.2%, and the Nasdaq Composite
inched higher to also set a fresh record.
What’s driving the market
A late-session dive for the Hang Seng put pressure on risk assets across the globe. The Hang Seng
ended 4.2% lower, its second consecutive drop of more than 4%, amid China’s unrelenting regulatory crackdown.
shares dived after China published rules requiring online food platforms to pay minimum wage, but the selling was broad-based, with technology giants Tencent
each seeing sharp declines.
The China worries have taken the shine away from a strong earnings season.
“This crackdown on private businesses from China is significantly denting market sentiment despite a better-than-expected earnings season so far,” said Pierre Veyret, technical analyst at ActivTrades.
shares rose 2% in early premarket action as the electric vehicle reported a surprisingly strong profit.
The Federal Reserve kicks off its two-day meeting, and the economics calendar for Tuesday includes durable-goods orders data for June, consumer confidence index for July and the latest Case-Shiller home price index.