U.S. stock futures were accelerating to the downside Tuesday morning, pointing to about a sharp slide for the Dow Jones Industrial Average. Pessimism around this week's U.S.-China trade talks in Washington and concerns about Brexit talks breaking down were winning the day in the markets. Ahead of Tuesday trading, the Dow, S&P 500 and Nasdaq were coming off their first declines in three sessions. Inflation numbers out Tuesday morning — September producer prices — dropped compared to expectations for a slight increase.
The White House is reportedly moving ahead with discussions about blocking U.S. government pension funds from investing in Chinese stocks, Bloomberg reported on Tuesday. This comes after Trump administration officials denied earlier reports that such an idea was under consideration. White House adviser Peter Navarro told CNBC last week that the reports were "fake news." However, people familiar with the matter told Bloomberg that Trump officials met last week to talk about the matter. Last month, Bloomberg, and other news outlets including CNBC, reported the U.S. was thinking about curbs on American investments in China.
The Trump administration widened its trade blacklist to include some of China's top artificial intelligence startups, punishing Beijing for its treatment of Muslim minorities and ratcheting up tensions ahead of high-level trade talks. The decision, which drew a sharp rebuke from Beijing, targets 20 Chinese public security bureaus and eight companies, including video surveillance firm Hikvision. Hikvision is a key customer of U.S. chipmaker Ambarella, which saw its stock fall about 10% in premarket trading.
The fallout in China widened from Houston Rockets General Manager Daryl Morey's tweet supporting pro-democracy protesters in Hong Kong. Chinese state-run television network CCTV said it was suspending the current broadcast arrangements for the NBA's preseason games in China. Tencent, which owns the digital streaming rights for NBA in China, said it would also "temporarily suspend" the preseason broadcast arrangements. China's largest online shopping sites owned by giants Alibaba and JD.com appear to have removed items related to the Houston Rockets.
President Donald Trump's decision to withdraw U.S. troops from northern Syria ahead of a long-planned Turkish military operation is being blasted by lawmakers and security experts in Washington, including Republicans better known for being loyal allies of the president. In a rare attack on Trump's policies, Sen. Lindsey Graham called the move "impulsive" and "a disaster in the making." The Turkey situation comes as Trump continues to deal with House Democrats' impeachment inquiry domestically.