(Reuters) – U.S. stock markets were set to open lower on Monday, with Apple and chipmakers bearing the brunt of expectations President Trump will make good on threats to set new tariffs on $200 billion of Chinese goods, and that Beijing will retaliate.
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., September 11, 2018. REUTERS/Lucas Jackson
A senior administration official told Reuters over the weekend that Trump was likely to announce the new tariffs as early as Monday while a widely read Chinese tabloid warned China would not be content to only play defense.
Futures pointed to slight falls on all three major U.S. markets at opening, with the tech-heavy Nasdaq the bigger loser.
“Investors are slowly starting to realize that these new tariffs could be extremely disruptive to the supply chain,” said Art Hogan, chief market strategist at B. Riley FBR in New York.
Apple (AAPL.O) fell 0.9 percent in premarket trading. The iPhone maker had earlier said tariffs could hit a “wide range” of its products.
At 9:06 a.m. ET, Dow e-minis 1YMc1 were down 24 points, or 0.09 percent. S&P 500 e-minis ESc1 were down 3.5 points, or 0.12 percent and Nasdaq 100 e-minis NQc1 were down 18 points, or 0.24 percent.
Trade-sensitive manufacturers Boeing (BA.N) and Caterpillar (CAT.N) also fell 0.7 percent and 0.9 percent respectively, while Chinese firms Alibaba (BABA.N), JD.com (JD.O) and Baidu (BIDU.O) lost between 1 and 3 percent.
Another chipmaker Broadcom (AVGO.O) was last up 1.5 percent after brokerage Nomura upgraded its shares on expectations that the company would raise its dividend to $9 per share.
Reporting by Shreyashi Sanyal in Bengaluru; editing by Patrick Graham