US STOCKS-Wall St headed lower as yuan slide deepens trade fears

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* Futures drop: Dow 1.26%, S&P 1.35%, Nasdaq 1.73%

By Medha Singh
Aug 5 (Reuters) - U.S. stock index futures pointed to more
losses on Monday as China's yuan hit its lowest in a decade,
spurring a continuation of a sell-off on trade concerns on
Friday that generated the S&P 500's worst weekly performance of
2019.
China let the yuan breach the key 7-per-dollar level for the
first time since 2008 on Monday, a sign Beijing might be willing
to tolerate more currency weakness that could further inflame
the trade conflict with the United States. All three of Wall Street's main indexes fell sharply at the
end of last week after President Donald Trump upended a
temporary trade truce by promising another round of tariffs on
Chinese imports.
The support that markets have seen since May from
expectations of an aggressive round of monetary easing has also
evaporated in the aftermath of the U.S. Federal Reserve's
statement last week.
The S&P 500 and Dow e-minis EScv1 1YMcv1 fell by around
1.4%, while futures on the Nasdaq NQcv1 , heavily exposed by
its chipmakers and other global technology players to Chinese
markets, were down 1.7%.
Shares of Apple Inc AAPL.O slid 2.5% in premarket trading
as analysts expected the newly proposed tariffs to hurt demand
for its flagship iPhone, while chipmakers Advanced Micro Devices
Inc AMD.O , Nvidia Corp NVDA.O , Micron Technology Inc MU.O
and Intel Corp INTC.O dropped between 1.4% and 3.4%.
Industrial bellwethers Boeing Co BA.N and Caterpillar Inc
CAT.N fell between 2% and 1.3%, respectively.
Signals from the bond market were also daunting as
investors' searching for safer assets sent the U.S. 10-year
Treasury yields to fresh three-year lows following their biggest
weekly drop in seven years on Friday. US/
The rest of the high-flying FAANG group also lost ground,
with Facebook Inc FB.O , Amazon.com Inc AMZN.O , Netflix Inc
NFLX.O and Google-parent Alphabet Inc GOOGL.O down between
1.7% and 2.3%.
In economic news, data due at 10:00 a.m. ET is expected to
show the Institute for Supply Management's (ISM)
non-manufacturing index rose to 55.5 in July from 55.1 a month
earlier.