Stock futures point to a mixed open
U.S. stock futures were down ahead of the first day of trading in a holiday-shortened week, with the tech-heavy Nasdaq Composite set to fall for a third consecutive session.
As of around 5:30 a.m. ET, the blue-chip Dow futures were up 45 points, or 0.16%, to 28,119. The S&P 500 futures were down 11.62, or 0.34% to 3,405.88. The Nasdaq 100 futures traded 194 points, or 1.68% to 11,354.75.
The stock market was closed Monday for the Labor Day holiday.
Trump again raises the prospect of separating the U.S. and Chinese economies
Meanwhile, President Donald Trump has again raised the idea of “decoupling” the U.S. economy from China just days after both sides reaffirmed their commitment to a phase one trade deal that ended tit-for-tat tariff hikes.
“We will make America into the manufacturing superpower of the world and will end our reliance on China once and for all,” Trump told a Labor Day news conference at the White House.
“Whether it’s decoupling, or putting in massive tariffs like I’ve been doing already, we will end our reliance in China, because we can’t rely on China,” he added.
Trump suggested the U.S. would not lose money if the two superpower no longer did business.
He also contrasted himself with Democratic nominee Joe Biden by vowing to forbid American companies that do business in China from winning federal contracts and punishing those that create jobs overseas.
Biden for his part has taken aim at Trump’s phase-one trade deal with China, describing it as “unenforceable,” and “full of vague, weak, and recycled commitments from Beijing.”
Crude futures sink on demand worries and Saudi price cuts
Crude futures tumbled early Tuesday amid concerns that a recovery in demand could slow as coronavirus cases swell around the world and after Saudi Arabia announced price cuts for oil sales to Asia and the U.S. for October shipments.
As of 5:30 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were down $1.39, or 3.5% to $38.38, having previously dropped as low as $38.18. International Brent crude futures were down 59 cents, or 1.4% to $41.42 per barrel.
Saudi Arabia has lowered prices both for Asian and U.S. buyers in the latest sign that demand recovery is slowing, according to a Bloomberg report.
The U.S. has 6.3 million confirmed coronavirus cases and more than 189,200 fatalities. There are more than 27.3 million cases and more than 893,000 deaths globally.