US pre-open: Stocks to recover after heavy losses but trade concerns persist
Us futures pointed to a positive open on Wall Street on Thursday following heavy losses in the previous session, although worry and confusion over Trump's trade plans was likely to keep weighing on sentiment.
At 1220 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all up 0.2%.
Stocks on Wall Street kicked off Wednesday's session in the black as investors welcomed an apparent softening of President Trump's stance on China after he suggested he might use the Committee on Foreign Investment in the US to monitor the country's investment in key US sector, rather than implement tough new measures aimed specifically at China.
However, the mood quickly soured after White House economic adviser Larry Kudlow said in an interview with Fox Business Network that Trump's announced plan did not signal a softened stance.
"It's not meant to be harder or softer," Kudlow said. "It's going to be very comprehensive and very effective at protecting our technological family jewels in the United States."
Oanda analyst Craig Erlam said: "With Trump picking fights on multiple fronts and no sides showing any willingness to back down, we may have to get used to this risk averse environment in the near-term. Markets have a tendency to move on though if we go a few weeks without any further escalation and gradually become less sensitive to the rants and reactions of those involved."
Meanwhile, Fiona Cincotta, senior market analyst at City Index, said: "Some analysts are speculating that part of the US equities sell-off is being driven by the end of the bull market in technology stocks rather than simply trade war fears."
In corporate news, Walgreens Boots Alliance was in the red in pre-market trade after it reported a 15.5% jump in quarterly profit, while spice and flavour company McCormick's was in focus after the release of its second-quarter numbers.
Eli Lilly looked set to be active after the pharmaceutical group announced positive results from a mid-stage trial of a treatment for inflammatory disease Ankylosing Spondylitis.
Elsewhere, Bed Bath & Beyond was set for losses at the open after the home furnishings retailer posted weaker-than-expected quarterly same-store sales late on Wednesday.
On the data front, initial jobless claims and the final first-quarter GDP reading are at 1330 BST. TD Securities said markets are not expecting any revisions to the previous 2.2% quarter-on-quarter GDP growth, while jobless claims are expected to have edged higher to 220,000 from 218,000 the previous week.