Stock futures decline as rally fizzles over China tensions
The two-day stock rally came to an end on Thursday
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U.S. equity futures are pointing to a lower open the day after a two-day rally in stocks came to an end.
The major futures indexes are indicating a decline of 0.4 percent when the Friday trading session begins.
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The recent rally ended as investors awaited a news conference about China by President Trump on Friday.
Benchmarks declined in Hong Kong, Tokyo, but not Shanghai.
U.S. and Chinese officials have been trading harsh rhetoric recently on everything from Hong Kong to the response to the coronavirus outbreak. One fear is that further friction could lead to another punishing round of escalating tariffs between the two countries that would hit the global economy when it’s already in a severe recession due to the coronavirus pandemic.
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China’s National People’s Congress on Thursday approved a national security law aimed at suppressing secessionist and subversive activity in Hong Kong, overriding any potential opposition by local lawmakers.
In Asian markets on Friday, Hong Kong's Hang Seng dropped 0.7 percent, Japan's Nikkei fell 0.2 percent and China's Shanghai edged 0.2 percent higher.
In Europe, London's FTSE fell 0.9 percent, Germany's DAX plunged 0.9 percent and France's CAC was down 0.7 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 37851.41 | +98.10 | +0.26% |
| SP500 | S&P 500 | 5020.96 | -1.25 | -0.02% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15655.573252 | -27.80 | -0.18% |
On Thursday on Wall Street, the S&P 500 ended the day 0.2 percent lower, the Dow Jones Industrial Average lost 0.6 percent and the Nasdaq composite fell 0.5 percent.
A barrel of U.S. crude oil for delivery in July lost $1.20 to $32.52 per barrel in electronic trading on the New York Mercantile Exchange. It rose 90 cents to settle at $33.71 on Thursday.
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Brent crude, the international standard, gave up $1.00 to $34.29. It rose 55 cents to $35.29 per barrel in London.
The Associated Press contributed to this article.