Investing.com – U.S. futures pointed to a bearish kick off on Wednesday, as ongoing trade disputes, political uncertainty and weak Chinese data weighed on investors.
The S&P 500 futures fell 24 points, or 1.36%, as of 6:35 AM ET (11:35 GMT) while Dow futures slumped 312 points, or 1.34%. Meanwhile tech heavy Nasdaq 100 futures decreased 133 points, or 2.13%.
The market had one of its worst years in a decade in 2018.
"It's little surprise to see a tentative start to 2019," wrote Neil Wilson, an analyst at Markets.com. "Investors should be prepared for more volatility ahead".
Meanwhile factory activity in China contracted for the first time in 19 months, as the U.S-China trade dispute and slowing economic growth has weighed on manufacturers.
The U.S. government also remains shut down, with Congress expected to reconvene on Wednesday. A tweet from U.S. President Donald Trump late on Tuesday suggested he could be open to deal but there were no clear signs that the shutdown would end anytime soon.
Apple (NASDAQ:AAPL) slumped 2.3% in premarket trading after news that Citi cut its first-quarter estimates for iPhone production. Tesla (NASDAQ:TSLA) dipped 1.9%, while Ford (NYSE:F) fell 0.7% and Wells Fargo (NYSE:WFC) declined 0.9%. The bank agreed to a $575 million settlement with all 50 U.S. states on Friday to resolve a claim that the company violated consumer protection laws.
Meanwhile JPMorgan (NYSE:JPM) was down 2%, while Boeing (NYSE:BA) slipped 2.2% and Microsoft (NASDAQ:MSFT) lost 2%.
In economic news, manufacturing PMI data comes out at 9:45 AM ET (14:45 GMT).
In commodities, gold futures increased 0.59% to $1,288.85 a troy ounce, while crude oil fell 0.8% to $45.04 a barrel. Meanwhile, the U.S. dollar index, which measures the greenback against a basket of six major currencies, rose 0.13% to 95.85.
-Reuters contributed to this report.