Wall Street Dives Deep Ahead of Opening Bell as Trump Targets Mexico in Latest Trade Drama

US stocks were set for heavy losses Friday after President Donald Trump said he will impose up to 25% tariffs on all Mexican imports.

In a tweet late Thursday, Trump said that Mexican tariffs will start at 5% and will quickly rise to 25% until illegal immigration from the southern border has stopped.

Oil prices nudged lower with global benchmark Brent crude down 2.78% and US crude West Texas Intermediate down 2.17% recently as the US added another front to its ongoing trade war.

Data released at 8:30 am showed personal income, consumer spending and the PCE price index rose 0.5%, 0.3% and 0.3%, respectively, for the month of April vs estimates for gains of 0.3%, 0.2% and 0.3% and previous month’s gains of 0.1%, 0.9% and 0.2%, according to data compiled by Econoday.

At 9:45 am, forecasters see the business barometer index based on the Institute for Supply Management – Chicago survey coming in at 53.6 for May vs April’s 52.6.

In equities, shares of Ameri100 (AMRH) were 36.5% higher pre-bell after the company said it initiated a proof of concept to migrate a key client to the Google Cloud platform.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial down 1.10%

-S&P 500 futures down 1.15%

-Nasdaq 100 futures down 1.40%

-Nasdaq 100 pre-market indicator down 0.98%

GLOBAL SENTIMENT

Nikkei down 1.63%

Hang Seng down 0.79%

Shanghai Composite down 0.24%

FTSE-100 down 1.04%

DAX-30 down 1.86%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: unchanged to lower

(-) Chip stocks: lower

(-) Software stocks: lower

(-) Hardware stocks: unchanged to lower

(-) Internet stocks: lower

(-) Oil stocks: unchanged to lower

(-) Biotech stocks: unchanged to lower

(-) Drug stocks: unchanged to lower

(-) Financial stocks: lower

(-) Retail stocks: unchanged to lower

(-) Industrial stocks: unchanged to lower

(-) Airlines: unchanged to lower

(-) Autos: unchanged to lower

UPSIDE MOVERS

(+) UBER (+2.4%) Q1 revenue, loss beat market expectations

(+) BBW (+3.1%) Fiscal Q1 profit, revenues rise YoY

DOWNSIDE MOVERS

(-) TSLA (-2.3%) Prices China-made Model 3 between CNY328,000 to CNY522,000

(-) BABA (-1.3%) Invests $100 million in video app Vmate, report says

(-) NTNX (-20.2%) Q3 results mixed vs estimates