(Reuters) - U.S. stock index futures dipped on Friday, with internet stocks poised for further declines and as investors braced for a fresh salvo of Sino-U.S. tariffs and the August jobs report.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 31, 2018. REUTERS/Brendan McDermid
The public comment period for proposed U.S. tariffs on an additional $200 billion worth of Chinese imports passed at midnight ET (0400 GMT). The tariffs could now go into effect at any moment, although there was no clear timetable, and Beijing has said it would retaliate.
According to CNBC, President Donald Trump hinted to a Wall Street Journal columnist that he might next take up trade issues with Japan. This as U.S.-Canada talks on a North American Free Trade Agreement deal still face a few stubborn issues.
Shares of social media stocks weakened for the third session in a row in early premarket trading on concerns of increased regulations. Facebook dropped 0.8 percent, Alphabet was off 0.3 percent, Snapchat-parent Snap Inc fell 0.9 percent and Twitter declined 0.5 percent.
U.S. job growth likely accelerated in August, with the unemployment rate expected to have fallen back to an 18-year low of 3.8 percent, which would bolster views that the economy was so far weathering the Trump administration’s heightening trade war with China.
The Labor Department’s closely watched employment report at 8:30 a.m. ET (1230 GMT) is expected to show nonfarm payrolls and average hourly earnings also increased.
At 7:34 a.m. ET, Dow e-minis were down 37 points, or 0.14 percent. S&P 500 e-minis were down 3.25 points, or 0.11 percent and Nasdaq 100 e-minis were down 10 points, or 0.13 percent.
After steep declines on Thursday, chip stocks looked to get a breather based on encouraging reports from Broadcom and Marvell Technology.
Broadcom was up 4.8 percent after its current-quarter revenue forecast largely beat estimates on strong data center demand and expectations of a boost from a new Apple iPhone.
Marvell Technology rose 9.7 percent after raising its forecast for synergies around the Cavium acquisition, which, analysts said, removed risks around further growth.
Reporting by Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta
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