U.S. stock futures fell Friday, pointing to a softer start for Wall Street as investors braced for economic data and fresh political tensions amid a report President Donald Trump may declare a national emergency to get funding for a border wall.
As well, U.S.-China trade talks were wrapping up with the picture unclear over how much progress had been made.
How did major benchmarks fare?
Dow Jones Industrial Average futures YMH9, -0.32% fell 122 points, or 0.5%, to 25,305, while S&P 500 futures ESH9, -0.29% were down 11.9 points, or 0.4% to 2,731.50. Nasdaq-100 NQH9, -0.32% futures dropped 34.5 points, or 0.5%, to 6,984.75.
On Thursday, the Dow Jones Industrial Average DJIA, -0.41% fell 103.88 points, or 0.4%, to 25,439.39, while the S&P 500 index SPX, -0.27% shed 7.30 points, or 0.3%, to 2,745.73. The Nasdaq Composite Index COMP, +0.09% edged up 6.58 points to 7,426.95.
What’s driving the market?
U.S. political tensions were swinging back into focus for investors. Senate Majority Leader Mitch McConnell said late Thursday that Trump will sign a spending bill to keep the government open, but also declare a national emergency at the border to get wall funding, which may set him up for a showdown with Congress.
Without passage of the agreement by Congress and a signature by Trump, parts of the government would shut down early Saturday morning. House speaker Nancy Pelosi said she may file a lawsuit over if Trump declares a state of emergency.
Read: If Trump declares an emergency, here’s where the money to build a border wall might come from
U.S.-China trade talks were due to wrap up Friday in Beijing, with reports negotiators remained deadlocked over key issues. The U.S. negotiating team was due to meet with Chinese President Xi Jinping on Friday. China is reportedly hoping that purchases of U.S. semiconductor and other goods will ease tensions and persuade Trump to extend a tariff truce. A big chunk of gains for stocks this week has been credited to optimism over the talks.
Investors will also be watching fresh economic data, with January import prices and the Empire State manufacturing index for February both due at 8:30 a.m. Eastern Time. As well, industrial production for January is due at 9:15 a.m. Eastern, followed by University of Michigan’s consumer-sentiment index for February and business inventories for December at 10 a.m. Eastern.
Investors will be keeping a keen eye on that data dump after Thursday’s report showing that U.S. retail sales fell by 1.2% in December, the largest single-month decline since 2009.
How are other markets trading?
Asian stocks closed lower, with Hong Kong’s Hang Seng Index HSI, -1.87% tumbling over 2%. The Stoxx Europe 600 SXXP, +0.17% was mostly flat in early action.
Crude-oil futures CLH9, -0.07% inched up, gold GCH9, +0.30% rose and the U.S. dollar DXY, +0.09% also gained.
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