More and more American firms are calling for the Trump administration to resolve its conflict with China.World Economyread more
The Fed is not likely to make a move on interest rates when it meets this week, but it should clear the way for a rate cut later in the summer.Market Insiderread more
Target CEO Brian Cornell apologized to customers for a disappointing weekend after the company experienced outages that shut down its cash registers and credit-card processors...Retailread more
American Airlines is ordering Airbus' new A321XLR, according to a source familiar with details of the agreement.Paris Air Showread more
Huawei CEO Ren Zhengfei tells CNBC the company's business is still strong in China.Technologyread more
Here are the biggest calls on Wall Street on WednesdayInvestingread more
The pilots union for Southwest Airlines says it will ask Boeing for compensation to cover legal costs and lost income for pilots due to the 737 Max grounding.Airlinesread more
Amazon announced an all-new Kindle Oasis on Wednesday morning with a feature that lets you adjust the screen to warmer tones for easier reading at night.Technologyread more
But BlackRock's global fixed income chief also says he doesn't think the Fed will announce a rate cut until July.Market Insiderread more
Panera Bread has been testing a menu specifically for dinner and plans to expand the pilot to a new market next month.Restaurantsread more
Beyond Meat's plant-based protein story holds appeal to the youngest generation of investors. But its shares, BYND, have done so well in such a short time that it may lead...Invest in You: Ready. Set. Grow.read more
(For a live blog on the U.S. stock market, click or type LIVE/ in a news window.)
* China ready to hit back at U.S. with rare earths -newspapers
* Bond yields at lowest since 2017; Bank stocks fall
* 27 of 30 Dow stocks trading premarket were lower
* Capri plunges after profit forecast disappoints
* Futures down: Dow 0.76%, S&P 0.65%, Nasdaq 0.85% (Changes comment, updates prices)
May 29 (Reuters) - Wall Street was set to open at its lowest level in at least two months on Wednesday after China signaled readiness to escalate the trade war with the United States, with investors fearing that the dispute could be long drawn and weigh on global growth.
China is ready to use rare earths, a group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment, to strike back at the United States, Chinese newspapers warned.
Adding to worries, China's Huawei Technologies Co Ltd filed a lawsuit against the U.S. government, in the telecoms equipment maker's latest bid to fight sanctions from Washington that threaten to push it out of global markets.
"Earlier in the year we thought the U.S.-China agreement was close to being done, and now it looks more far away than ever and that is making investors worried," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.
"Fears of a recession is being compounded by two things, one is the reality of what the trade war could bring, another is whenever the markets hit a new high it is a self-fulfilling prophesy to say we can't go any higher."
The benchmark S&P 500 index is now 5.4% away from its all-time high of 2,954.13 hit on May 1.
Trade worries and slowdown fears have pressured investors to dump shares globally and seek safety in German and U.S. government debt.
Yields on the benchmark U.S. 10-year notes fell 13 basis points below the 3-month rates, causing a yield-curve inversion, typically seen as a leading indicator of a recession.
Interest-rate sensitive bank stocks fell in premarket trading, with JPMorgan Chase & Co and Bank of America Corp down more than 1.2%.
The declines were broad based, with 27 of the 30 Dow components that were trading premarket posting losses. Tariff-sensitive stocks such as Apple Inc, Boeing Co and Caterpillar Inc fell about 1%.
At 8:28 a.m. ET, Dow e-minis were down 192 points, or 0.76%. S&P 500 e-minis were down 18.25 points, or 0.65% and Nasdaq 100 e-minis.
Oil majors Exxon Mobil Corp and Chevron Corp dropped 1%, as crude prices tumbled more than 2%.
Chipmakers, which get a large portion of their revenue from China, also declined, with shares of Nvidia Corp, Micron Technology Inc and Intel Corp were off more than 1%.
Among other stocks, General Mills dropped 3.3% after Goldman Sachs downgraded the stock to "sell".
Capri Holdings Ltd plunged 7% after the Michael Kors owner forecast first-quarter profit below expectations as it spends more on marketing and opening new stores for its recently acquired Versace brand. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Anil D'Silva)