US pre-open: Stocks seen weaker on Trump concerns

US futures pointed to a weaker open on Wall Street on Wednesday as growing political turmoil prompted doubts about President Trump's ability to push through his economic agenda.

At 1100 BST, Dow Jones Industrial Average and S&P 500 futures were down 0.5%, while Nasdaq futures were off 0.4%.

Sentiment was likely to be undermined by reports that President Trump asked former Federal Bureau of Investigation director James Comey to end his investigation into former National Security Adviser Michael Flynn's ties with Russia. According to The New York Times, Trump also told Comey he should consider trying to jail journalists for publishing classified information. If the report proves to be true, it could be seen as an attempt to obstruct justice, which is an impeachable offence.

Spreadex analyst Connor Campbell said: "Given that the ‘Trump trade’ is one of the main reasons the market has been able to break records of late, it is understandable that the scandal engulfing the US government would be of some concern to investors. That’s because this crisis will likely prevent Trump from pushing through the very policies - like his huge infrastructure plans and generous tax cuts - that fuelled much of the recent rally any time soon, undermining the basis for the current highs."

However, IG analyst Chris Beauchamp said "over-eager bears should tread with care".

"Fresh bad news for the White House emerges daily now, and it may finally be having something of an impact on Wall Street. Still, it is too early to predict the demise of this president just yet. His election campaign always seemed one day away from disaster, and his presidency thus far has been remarkably similar. But the campaign won out in the end, and it would be unwise to assume that impeachment is now a given."

Worries about Trump weighed on the ICE Dollar Index, which fell to its lowest level since the day after the US presidential election, hitting an intraday low of 97.86. The greenback was down 0.2% versus the pound, 0.1% against the euro and 0.6% versus the yen.

On the corporate front, Advanced Micro Devices fell in pre-market trade after it laid out its growth plans late on Tuesday.

Target was among the companies slated to report earnings before the opening bell, while Cisco Systems - whose shares have risen on the back of the recent 'WannaCry' ransomware attack - is on tap after the close.