Wall St. points to lower open as Trump worries rattle markets
U.S. stock futures pointed to a lower open on Wednesday morning, as traders kept an eye on fresh political developments in the U.S. after President Donald Trump allegedly asked the FBI to end a probe into his former security adviser.
The blue-chip Dow futures lost 82 points, or around 0.4%, by 6:45AM ET (10:45GMT), the S&P 500 futures dropped 11 points, or 0.4%, while the tech-heavy Nasdaq 100 futures fell 19 points, or about 0.3%.
U.S. equities closed mixed on Tuesday, with the S&P 500 and the Dow ending flat after a lackluster set of economic data and retail earnings, while the Nasdaq hit another record closing high with help from technology stocks.
The news came one day after a report accused Trump of disclosing sensitive intelligence obtained from a close U.S. ally with Russia’s foreign minister about an Islamic State operation.
The reports added to concerns that the president will be unable to successfully push through his economic stimulus program in the face of mounting controversies.
The news dampened demand for risk-sensitive assets, such as global equities, and sparked a rally in assets perceived as safe, such as the yen, gold and U.S. Which are often used as a hedge in times of political uncertainty.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, weakened for a sixth straight day, falling around 0.3% to 97.85 in New York morning trade.