Wall Street Poised To Open Lower As U.S. Companies Face Backlash In China

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U.S. stocks set to open higher

Wall Street is poised to open lower on Wednesday after reports that U.S. companies are facing a backlash in China as the trade war between the two nations intensifies.

The Financial Times reports that nearly half the members of an American business lobby group in China have been hit with retaliatory measures such as delayed approvals for licenses, more inspections, and slower customs clearance.

As of 7:50 a.m. ET, futures on the blue-chip Dow were seen losing 73.5 points, or 0.28% to 25,801.5. Futures on the tech-heavy Nasdaq 100 dropped 46.62 points, or 0.57% to 7,421.38 while those on the broader S&P 500 were down 9.88 points, or 0.34% to 2,856.12.

Qualcomm tanks after court ruling

Shares of Qualcomm Inc. (NASDAQ: QCOM) tumbled 8.35% in premarket trading session on Wednesday after a federal judge filed her ruling on the Federal Trade Commission (FTC) antitrust suit against the chipmaker.

U.S. District Judge Lucy Koh ruled that the company unlawfully used its position to suppress competition in the market for smartphone chips by exacting exorbitant licensing fees.

She ordered the company to negotiate or renegotiate existing licensing terms to ensure they are free of unfair business practices. Qualcomm also has to license standards-essential patents at reasonable rates and can’t enter exclusivity supply agreements.

Theresa May faces pressure from her own party

Theresa May is under renewed pressure to step down as UK’s Prime Minister after senior Tory MPs blasted her latest Brexit proposals. May laid out several Brexit proposals that included a long-term alignment with European Union regulation on trade policy and workers’ rights as well as a second, confirmatory referendum.

The proposals have angered some senior UK conservative who are now planning to change party rules to force her out through a confidence vote if she refuses to resign.