Stock futures fell early Tuesday as trade tensions between the United States and China escalated.
Beijing has decided to ban Chinese companies from doing business with the American subsidiaries of a South Korean shipbuilding giant. China said Hanwha Ocean subsidiaries supported the U.S. government and harmed the interests of Chinese companies. This decision comes as special American and Chinese port taxes have come into force.
Treasury Secretary Scott Bessent told the Financial Times that China was “in the middle of a recession/depression,” adding: “They want to drag everyone down with them.”
The streak of market volatility seemed set to continue for a third day. U.S. stock futures fell, as did European and Asian indexes. The dollar continued to strengthen. Treasury yields remained broadly stable as bond markets reopened.
Third-quarter earnings season is in full swing, with financial stalwarts leading the way. Goldman Sachs, JPMorgan and Wells Fargo reported better-than-expected results, while BlackRock’s assets under management surpassed $13 trillion for the first time. In total, about 35 S&P 500 companies are expected to report earnings this week.
In the commodities sector, the price of gold hits a new all-time high. Silver futures retreated after hitting a record Monday for the first time since 1980. Crude oil prices fell about 2%.
The Nikkei 225 index slipped 2.6%its worst day since April, amid heightened political uncertainty in Japan.
📧 Be smarter in the markets with our free weekday Morning And evening newsletters.
