Stock

Market snapshot: US inventory futures slip forward of technical outcomes as China's transfer casts shadows

US stock futures slid on Tuesday on a spate of tech profits, with Chinese regulatory crackdown sparking an overhang in the market.

What's up

Futures on the Dow Jones Industrial Average
JM00,
-0.52%
lost 210 points;

Futures on the S&P 500
ES00,
-0.41%
0.5% lost;

Futures on the Nasdaq 100
NQ00,
-0.22%
slipped 0.3%.

US stocks closed at record highs for the second year in a row on Monday. The Dow Jones Industrial Average
DJIA,
+ 0.24%
and the S&P 500
SPX,
+ 0.24%
each up 0.2%, and the Nasdaq Composite
COMP,
+ 0.03%
Inches higher to set a new record too.

What drives the market

A dive for the Hang Seng at the end of the session put high risk assets around the world under pressure. The Hang-Seng
HSI,
-4.22%
ended 4.2% lower, the second straight decline of more than 4%, amid China's relentless regulatory crackdown.

Meituan
3690,
-17.66%
Stocks tumbled after China released rules requiring online food platforms to pay a minimum wage, but the sale was broad-based, with tech giant Tencent
700
-8.98%
and Alibaba
9988,
-6.35%

BABA,
-7.15%
everyone sees sharp declines.

Concerns about China have taken the shine from a strong earnings season.

"This crackdown on private Chinese companies has been a major drag on market sentiment despite a better-than-expected earnings season so far," said Pierre Veyret, technical analyst at ActivTrades.

Tesla
TSLA,
+ 2.21%
Stocks rose 2% in the early pre-IPO moves as the electric vehicle posted a surprisingly strong gain.

After the close of trading, US tech giant alphabet
Goog,
+ 1.33%,
Apple
AAPL,
+ 0.29%
and Microsoft
MSFT,
-0.21%
Report quarterly results.

The Federal Reserve is opening its two-day session, and Tuesday's economic calendar includes June durable goods order data, July consumer confidence index, and the latest Case-Shiller house price index.

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