Stocks Set To Fall At Wall Street Open As Trade Tensions Continue

stock markets

U.S. stocks poised to slide at open

U.S. stock markets are set to open lower on Thursday led by tech companies as concerns over deteriorating trade tensions between Washington and Beijing hit investors.

On Thursday, Chinese Commerce Ministry said the U.S. needs to “correct its wrong actions” if its wants to continue trade negotiations.

“If the US wants to continue to talk, it should show sincerity and correct its mistaken actions. Only on the basis of equality and respect can the negotiations have the chance of continuing,” said commerce ministry spokesman Gao Feng at a weekly briefing.

As of 5:57 a.m. ET, futures on the blue-chip Dow declined 238 points, or 0.92% to 25,533. Futures on the broader S&P 500 were down 27.62 points, or 0.97% to 2,829.88 while those on the tech-heavy Nasdaq 100 fell 101.88 points, or 1.37% to 7,328.12.

Huawei says its own operating systems could be ready this year

Huawei Technologies Ltd says it could launch its own operating system for laptops and smartphones by fall this year, according a CNBC report.

Huawei’s Consumer Business Group CEO, Yu Chengdong, told the network that the phonemaker could create a version of the new OS in China by September, if Google and Microsoft completely ban the company from using their software.

The system, which is expected to be compatible with all Android apps, could be ready for international markets by the first half of 2020. Washington recently banned U.S. companies from conducting business with Huawei, after the White House identified the phonemaker as a potential threat to national security.

Boeing 737 Max grounding likely to last longer than airlines had expected

Dan Elwell, the acting director general of U.S. Federal Aviation Authority indicated on Wednesday that Boeing 737 Max grounding could last longer than airline companies had hoped. Speaking to reporters, Elwell said:

“It’s a constant give and take until it is exactly right. It’s taking as long as it takes to be right. I’m not tied to a timetable.”

On Thursday, the FAA will host dozens of regulators in Dallas to discuss its plans of returning the 737 Max to the skies.

The plane was grounded in March in the wake of two deadly crashes that left 346 people dead. Shares of Boeing (NYSE: BA) were down 1.64% in premarket trading session.

Theresa May likely to resign on Friday

U.K. Prime Minster Theresa May is likely to step down on Friday after a senior cabinet minister quit her government in protest over her Brexit deal, according to a report by The Times newspaper on Thursday morning.

Andrea Leadsom, one of the most prominent Eurosceptic ministers in May’s cabinet quit as leader of the Commons ahead of European Parliament elections. Leadsom accused May of failing to honor the result of the 2016 referendum.

Indian Prime Minister Narendra Modi set to win a second term

Early poll counts in India indicate Prime Minister Narendra Modi will win a second term. Modi’s Bharatiya Janata Party (BJP) is ahead in 349 of the 542 seats that went to the polls, while Congress Party (the main opposition) is only leading in 50 seats. BJP needs to win 272 seats in the next parliament in order to form a government.

India’s S&P BSE Sensex and NSE Nifty 50 indexes initially set record highs on Thursday morning but later gave away the gains to settle at 38811.39 and 11682.50, respectively.