Stock Futures edge lower on US protests, simmering China tensions

June 1, 2020

New York (Jun 1) - U.S. stock index futures slipped on Monday following a strong showing in May, as investors turned cautious after violent protests across the country over race as well as simmering tensions between Washington and Beijing.

National Guard troops were deployed in 15 states and Washington, D.C. on Sunday in an attempt to quell a sixth night of violence that began with peaceful protests over the death of a black man, George Floyd, in police custody.

Target Corp and Walmart Inc shuttered stores, while Inc scaled back deliveries amid the unrest that included looting in many cities. Their shares fell between 0.3% and 1.1% in premarket trading.

Further denting sentiment, Beijing said U.S. attempts to harm Chinese interests will be met with firm countermeasures, criticizing a Washington decision to begin ending special treatment for Hong Kong in response to a new security law.

The escalation in Sino-U.S. tensions poses a major threat to the stock market’s rebound since late March that was powered by expectations of a recovery from the coronavirus-led downturn.

Wall Street had rebounded late in Friday’s session, with the S&P 500 logging its biggest two-month percentage gain since 2009, after President Donald Trump’s measures against China were less threatening than feared.

Drugmaker Pfizer Inc slipped 6% after it said the phase 3 trial of its breast cancer drug Ibrance was unlikely to meet the main goal for treatment of early breast cancer.

Coty Inc jumped 7.2% after the cosmetics company appointed Chairman Peter Harf as its new chief executive officer.

At 6:42 a.m. ET, Dow e-minis were down 29 points, or 0.11%, S&P 500 e-minis were down 5.5 points, or 0.18% and Nasdaq 100 e-minis were down 47 points, or 0.49%.

The Dow Jones index closed down 0.07% at 25,383.11​ on Friday, while the S&P 500 index closed up 0.48% at 3,044.31​ on Friday.


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