Investing.com - Dow futures slumped nearly 300 points on Friday after U.S. President Donald Trump threatened to impose tariffs on all Mexican goods in a move that increased fears of a global recession and limits the chance of a trade deal between the U.S. and China.
Dow futures fell 293 points or 1.2% by 6:44 AM ET (10:44 GMT), while tech-heavy Nasdaq 100 futures lost 111 points or 1.5% and S&P 500 futures was down 34 points or 1.2%.
Trump tweeted on Thursday that he would impose a 5% tariff starting June 10 on all Mexican exports to the U.S. unless the country stopped immigrants from crossing the border.
Fears of continued a trade spat with China had already left Wall Street in negative territory this week. Data on Friday from China showed recession fears could be well founded, as the country’s factory activity in May contracted more than expected.
Technology stocks were down in premarket trading, with Apple (NASDAQ:AAPL) falling 2.1%, Netflix (NASDAQ:NFLX) slipping 1.5% and semiconductor company Micron (NASDAQ:MU) slumping 3.4%.
Tesla (NASDAQ:TSLA) fell 1.5% on news that it is lowering the price of its China-made Model 3 vehicles from those that it imports as it tries to increase sales in the Chinese market.
Elsewhere, Uber (NYSE:UBER) rose 0.9% after it reported a quarterly loss in line with expectations.
On the economic front, personal income and spending are out at 8:30 AM ET (12:30 GMT), followed by the Chicago purchasing managers index (PMI) at 9:45 AM ET (13:45 GMT) and the University of Michigan revised consumer sentiment index at 10:00 AM ET (14:00 GMT).
In commodities, crude oil fell 2% to $55.45 a barrel, while gold futures rose 0.9% to $1,298.30 a troy ounce. The U.S. dollar index, which measures the greenback against a basket of six major currencies, lost 0.1% to 97.910.