Wall Street Set To Open Lower As U.S.-Iran Tensions Rise

Wall Street futures

Trump threatens Iran

President Donald Trump issued a threat to Iran in a tweet on Sunday, vowing to destroy the country if it attacks U.S. interests. “If Iran wants to fight, that will be the official end of Iran,” the president tweeted. “Never threaten the United States again!”

The Trump administration has repeatedly accused the Middle Eastern nation of threatening U.S. interests and troops.

Relations between two countries worsened last year after Trump withdrew the U.S. from a landmark 2015 nuclear deal, and restored all sanctions that had been removed in exchange for Iran cutting back its nuclear operations.

Google, Intel, Broadcom, and Qualcomm cut business ties with Huawei

Google has dealt a huge blow to Huawei Technologies Co. after restricting the Chinese telecommunication giant from accessing updates of its Android operating system, according to a Reuters report.

Google, which is owned by Alphabet Inc (NASDAQ: GOOG), made the move to comply with an executive order that President Trump signed last week. The order bars American companies from using telecommunication hardware supplied by Huawei. Google said Huawei is now only able to use the Android Open Source Project – a public version of Android operating system.

Broadcom (NASDAQ: AVGO), Intel (NASDAQ: INTC), Qualcomm (NASDAQ: QCOM), and Xilinx (NASDAQ: XLNX) are also planning to cut business ties with Huawei, according to a report by Bloomberg. The chipmakers told their employees they will cut off the supply of components to the phonemaker until further notice.

U.S. stocks poised to open lower

ock MNews that several top American companies have suspended business ties with Huawei is also expected to weigh on market sentiment today.

Futures on the blue-chip Dow were seen losing 31 points, or 0.1% as of 5:30 a.m. ET. Futures on the tech-heavy Nasdaq 100 declined 36 points, or 0.5%, while those on the S&P 500 futures lost 3.9 points.

Tesla extends slide after analyst downgrade

Shares of Tesla Inc. (NASDAQ: TSLA) slumped 3.63% in pre-market trade Monday, after concerns over the electric car maker’s growth prospects prompted a downgrade at Wedbush.

Analyst Dan Ives cut his price target to $230 from $275 but maintained his rating at neutral, saying he is also concerned over underlying demand for the automaker’s flagship Model 3 car.

“We continue to have major concerns around the trajectory of Tesla’s growth prospects and underlying demand on Model 3 in the US over the coming quarters which is putting more heat in the kitchen on Musk & Tesla to reign in expenses at an accelerated rate with profitability targets in 2H19 a Kilimanjaro-like uphill climb,” Ives warned.