U.S. stock index futures slipped early Wednesday, weighed down by fresh trade tensions between Washington and Beijing following new export controls targeting Nvidia (NVDA, Financial).
Futures tied to the S&P 500 dipped about 0.6%, while the tech-heavy Nasdaq 100 dropped more than 1%. Dow Jones Industrial Average futures, however, held slightly higher, up 0.1%, according to futures data.
Nvidia (NVDA, Financial) fell 5.4% in premarket trading after disclosing it would need a special license to export its H20 graphic processing units and related hardware to China, a restriction set to remain in place indefinitely. The move fueled renewed anxiety over a potential escalation in the U.S.-China trade conflict.
“The mood turned negative again yesterday, as U.S.-China tensions resurfaced,” Deutsche Bank's Henry Allen said in a client note. “After a brief stretch of calm, this reminds investors of the lingering risks tied to trade escalation.”
UBS economist Paul Donovan suggested recent retail activity may reflect consumers accelerating purchases ahead of potential tariffs. March retail sales and industrial production data are due later Wednesday, with the former expected to climb 1.3% month-on-month.
Investors are also watching for comments from Federal Reserve Chair Jerome Powell, who is scheduled to speak later in the day.
President Donald Trump's call for a probe into U.S. critical minerals imports added another layer of uncertainty, as it could result in new tariffs or supply chain restrictions.
