Wall Street observers intensify concerns over trade war

US stock index futures were down sharply on Monday morning, as market participants watched the intensification of trade disputes between the world's two largest economies.

At approximately 3:40 (ET), Dow futures dropped by 179 points, indicating a negative opening of more than 181 points. The S & P and Nasdaq futures contracts were both slightly lower.

The market is largely focused on the evolution of global trade, as fears grew that Washington's latest tariff threats against Mexico would tip the global economy into a recession.

Tensions between the United States and China intensified over the weekend, as the two countries clashed over commercial, technological and security issues.

A senior Chinese official and trade negotiator said on Sunday that Washington could not exert pressure to impose a trade deal in Beijing. Vice Minister of Commerce Wang Shouwen also declined to say whether leaders of the two countries would meet at the G20 summit to draw up an agreement later this month.

With respect to the data, a final reading of the May Purchasing Managers' Index (PMI) data for the manufacturing sector will be released at approximately 9:45 am ET. The May Supply Management Institute (ISM) manufacturing index, April construction spending figures and latest light vehicle sales data will follow a little later in the session.

In the case of companies, Box and Coupa Software are expected to publish their latest quarterly results after the close of the market.

Friday, the Dow Jones lost more than 350 points after President Donald Trump announced that the United States would impose a 5% tariff on all Mexican imports from June 10. takes no meaningful action to prevent migrants from reaching the southern border.

Friday's declines added to a sizzling week and month for equities. The Dow fell 3% last week and recorded its sixth consecutive weekly loss. This is the longest run of weekly losses for the Dow since 2011. The S & P 500 and the Nasdaq recorded their fourth consecutive weekly loss. Major indices also ended a four-month winning streak.