(Reuters) – U.S. stock index futures dropped on Friday, as the long-feared hit to global growth from President Trump’s trade war crystallized in slashed sales forecasts from chipmaker Broadcom, and signs of the worst slowdown in Chinese industry in 17 years.
Shares of Broadcom Inc plunged 9.8% in premarket trading, after it cut its revenue forecast for 2019 by $2 billion, blaming the U.S.-China trade conflict and export curbs on Huawei Technologies Co Ltd.
Data - China - Output - Growth - World
Data from China showed industrial output growth in the world’s second largest economy slowed to a more than 17-year low in May, sending a chill through stock market investors globally.
Nasdaq 100 e-minis pointed to a 59.5 point fall, or 0.79% fall at opening while Dow e-minis slid 52 points, or 0.2%, and S&P 500 e-minis 8.75 points, or 0.3%.
S - P - % - June - Hopes
The S&P has gained about 5% in June so far on hopes the Federal Reserve will reduce interest rates soon to combat slowing global growth, a stark contrast to the steady path of monetary tightening it was on until the end of last year.
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