U.S. futures tumbled early Monday after President Donald Trump revitalized worries about a complete trade war with possibility of tariffs on hundreds of billions of dollars of Chinese imports.

NASDAQ 100 futures fell 2.1 percent or 167 points, while S&P 500 futures lost 1.7 percent or 49 points. Dow futures dropped 1.8 percent or 488 points.

Trump’s warning supposedly prompted China to remove this week’s scheduled round of trade discussions, according to its policy of declining to negotiate “with a gun to its head”. The U.S. stocks journal reported that a trade entrustment would fly to Washington as scheduled.

Nonetheless, it wasn’t clear whether Vice Premier Liu He would head the entrustment, as planned. Liu’s nonattendance would make it harder for the entrustment to make some top-level decisions and therefore possibly push back further timeline for a possible resolution to the argument between the two nations.

The tweets came as an unexpectedly after officers almost the discussions had informed about gradual development and dangled the probability of a summit at the end of May to sign off on a deal.

The list of most active losers in premarket trade is expected headed by the ADRs of Chinese corporations such as Alibaba, Jd.com and electric car maker. Nonetheless, chipmaker Advanced Micro Devices and Apple – which has a high publicity to China both through its supply chain and its sales of iPhones – were also marked down.


Trump’s intercession came only 48 hours after additional firm employment report damped expectations of any near-term interest rate cut from the Federal Reserve. Three senior Fed officers might offer their explanation of that report when they speak later Monday.

Crude oil futures also affected from the U.S. President’s Twitter barrage, as a trade war is seen by the International Monetary Fund and a lot of others as one of the major risks to the world economy, and thus to oil demand.

U.S. crude oil futures plunged all-night and dropped 0.9 percent at $61.38 a barrel, while Brent futures were down 0.6 percent at $70.42 a barrel.

In commodities, gold futures soared in line with other haven assets to stand at $1,283.05 a troy ounce, increase from $1,271.95 before the tweets.

The U.S. dollar index, which measures the dollar versus a basket of six major currencies, was at 97.317, climbing versus the euro, sterling and Australian dollar, but dropping versus the yen and the Swiss franc.

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