U.S. Stock Futures in the Red on Growth Slowdown Fears

This post was originally published on this site

© Reuters. © Reuters.

Investing.com – U.S. stock futures pointed to a sharply lower open on Wednesday after weak manufacturing data stoked fears that the trade war with China is hobbling the world’s largest economy, too.

The contract was down 160 points, or 0.6% by 06:50 AM ET (10:50 GMT), the was down 17 points, or 0.6%, while the contract dropped 0.7%.

The and suffered their worst falls in over a month on Tuesday after data showed U.S. factory activity shrank in September to its weakest in over a decade, indicating that the U.S. is not immune to the manufacturing slowdown affecting China and Europe.

The closely watched government nonfarm payrolls report on Friday is expected to shed further light on U.S. economic strength.

“This is a bad number, fitting in with the world’s manufacturing recession,” Jim Bianco, head of Bianco Research in Chicago, said of the ISM report. “I think the market is right to be concerned, but we will have to see whether other manufacturing numbers in the U.S. bear that out, not the least of which being the manufacturing payroll numbers on Friday.”

Investors are looking ahead to the ADP nonfarm payrolls report at 8:15 AM ET (1215 GMT) for an indication on how the slowdown is hitting private sector .

Meanwhile, comments from Philly Fed President and his New York counterpart may indicate whether the data has moved the Fed’s dial towards further easing.

In earnings news, Bed Bath & Beyond (NASDAQ:) is set to report earnings after markets close, while home builder Lennar (NYSE:) beat expectations with its quarterly update.

Outside of equities, the , which measures the greenback against six rival currencies, climbed 0.2% to 98.99, while the yield on the Treasury was last trading at 1.6%.

In commodities, were up $1.55, or 0.3%, at $1,490.55 a troy ounce, while traded up 0.1% to $53.72 a barrel.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.