US pre-open: Futures lower as Nvidia weighs on Nasdaq
By Iain Gilbert
Date: Wednesday 16 Apr 2025
(Sharecast News) - Wall Street futures were in the red ahead of the bell on Wednesday as trade tensions remained in focus.
As of 1255 BST, Dow Jones futures were down 0.14%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.75% and 1.44% weaker, respectively.
The Dow closed 155.83 points lower on Tuesday, taking a bite out of gains recorded in the previous session.
Shares in chipmaker Nvidia headed south in pre-market trading after the AI darling warned that it would take a $5.5bn hit this quarter related to the export of its H20 graphics processing units to China, for which it was specially designed. Nvidia stated the US government had told it that it would require a license if it were to send chips from the US to China. Fellow chipmakers AMD and Micron Technology also traded lower before the open.
Trade Nation's David Morrison said: "Last week President Trump postponed most of his reciprocal tariffs on the US's trading partners for three months. But he upped levies on China to 145%, triggering China to retaliation with 125% tariffs on US imports. This was the unambiguous start to an all-out US-China trade war, made worse by insults lobbed at China from members of the Trump administration, leading to a response in kind from China. If all this wasn't so damaging for the world's economy, it would be good fun watching two famously thin-skinned geopolitical opponents taking childish potshots at each other.
"So, trade and tariffs remain firmly in focus. US Treasury Secretary Scott Bessent is set to meet with South Korea's Finance Minister Choi next week to negotiate, as global trade dynamics continue to evolve. Meanwhile, China has replaced its top trade negotiator, citing stalled progress in US talks. In a notice this morning, China said it is open to engage in trade talks with the US, if the Trump administration shows it some respect, and names its chief negotiator."
Elsewhere in the corporate space, United Airlines shares surged prior to the open after the carrier posted Q1 adjusted earnings of $0.91 each, ahead of analysts' estimates of $0.76 each.
On the macro front, mortgage applications decreased 8.5% in the week ended 11 April, according to the Mortgage Bankers Association of America, with applications to refinance a mortgage down 12%, while applications to purchase a home slipped 5% week-on-week.
Still to come, March retail sales will be published at 1330 BST, while March industrial production and capacity utilisation figures will be out at 1415 BST, and the NAHB's April housing market index was slated for release at 1500 BST.
Investors were also patiently awaiting comments from Federal Reserve chairman Jerome Powell at 1830 BST.
Reporting by Iain Gilbert at Sharescast.com
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