By Shreyashi Sanyal
(Reuters) – US stock index futures tumbled on Monday as fears about the impact of Washington's crackdown on Huawei Technologies in China on large technology companies only added to the concern over the stock market. worsening trade disputes between the world's two largest economies.
Apple Inc. shares fell by 2.4% before commercialization, while Huawei's US suppliers, including Qualcomm, Micron Technology and Broadcom Inc., sold about 3%.
A warning from HSBC that rising prices of Apple products as a result of higher tariffs in China could have "dire consequences" on demand has also weighed on the iPhone maker's stock.
The Trump administration officially added Huawei to a blacklist of trade on Thursday, compounding the already fierce trade war between the two sides, while China on Monday accused the United States of entertaining "extravagant expectations" "for a trade agreement.
Google has announced that it has suspended with Huawei certain transactions requiring the transfer of hardware, software and technical services, announced Reuters over the weekend.
Chip makers, including Intel Corp, Qualcomm, Xilinx Inc. and Broadcom, have announced to their employees that they will not provide Huawei until further notice, Bloomberg said Sunday.
Shares of Alphabet, Facebook Inc. and Microsoft Corp all lost 1.1%.
At 7:23, ET, the Dow e-minis lost 121 points, or 0.47%. The S & P 500 minis were down 16.25 points, or 0.57%, and those in the Nasdaq 100 down 90.5 points, or 1.2%.
Increased trade tensions pushed the S & P 500 and Nasdaq to their second successive weekly declines on Friday, while the Dow Jones Industrial Average Index crowned a fourth consecutive week of losses, the longest run of losses since three years.
Investors will also be seeking comments from a group of retailers reporting this week the impact of the tariff war.
Home Depot, Nordstrom, Kohl's and Target are among the retailers to report.
With 460 companies in the S & P 500 reporting first quarter results, 75.2% outperformed analysts' profit forecasts. Analysts now expect earnings growth of 1.4% in the first quarter, a significant turnaround from the 2% loss expected on April 1, according to Refinitiv data.
The speech of Federal Reserve Chairman Jerome Powell, entitled "Assessing the Risks to Our Financial System" at the conference organized by the Federal Reserve Bank of Atlanta at 7 pm is also topical. And (2300 GMT).
(Report by Shreyashi Sanyal in Bengaluru, edited by Sriraj Kalluvila)