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US STOCKS-Futures lower on recession worries

Published 28/08/2019, 13:13
© Reuters.  US STOCKS-Futures lower on recession worries
US500
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* Futures down: Dow 0.25%, S&P 0.19%, Nasdaq 0.27%

By Akanksha Rana

Aug 28 (Reuters) - U.S. stock index futures fell on

Wednesday after moves in the U.S. bond market returned investors

to worrying about the risk of recession as a bruising U.S.-China

trade war drags on.

The U.S. yield curve inverted on Tuesday to levels not seen

since 2007, triggering a selloff on Wall Street. US/

Shares of banks, which typically come under pressure in a

low interest rate environment, fell in premarket trading, with

Bank of America Corp (NYSE:BAC) BAC.N , Citigroup Inc (NYSE:C) C.N , Goldman Sachs (NYSE:GS)

Group Inc GS.N and JPMorgan Chase (NYSE:JPM) & Co JPM.N down nearly 1%.

The recent bout of selling has dragged the benchmark S&P 500

.SPX 5.5% away from a record high hit in late July.

Markets have been roiled by persistent trade tensions after

Beijing announced retaliatory tariffs on U.S. goods and

President Donald Trump ordered the U.S. companies to look at

alternatives to doing business with China.

Investors are also awaiting the release of the government's

closely watched monthly jobs report and manufacturing data next

week to gauge the pace of interest rate cuts.

At 7:34 a.m. ET, Dow e-minis 1YMcv1 were down 65 points,

or 0.25%. S&P 500 e-minis EScv1 were down 5.5 points, or 0.19%

and Nasdaq 100 e-minis NQcv1 were down 20.5 points, or 0.27%.

Among other stocks, Tiffany & Co TIF.N rose 3% after the

luxury retailer beat quarterly profit estimates as it cut

marketing spending. Shares of Hewlett Packard Enterprise Co HPE.N jumped 4.3%

after it beat profit estimates and raised its 2019 adjusted

profit forecast. Autodesk Inc's ADSK.O slumped 12.2% after the AutoCAD

software maker cut its full-year earnings forecast.

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