S&P Futures Test Friday Low as China Retort Ups Tariff Tension

(Bloomberg) -- U.S. stocks were headed for an ugly open, with contracts tracking the S&P 500 testing lows hit Friday, as investors braced for the next phase of the escalating trade war.

June contracts on the S&P 500 Index fell 1.5% to 2,844 at 8:12 a.m. in New York after China said it will raise tariffs on $60 billion of U.S. goods starting June 1. The benchmark stock index plunged 2.2% last week. Contracts bottomed at 2826 in the previous session.

It’s unwelcome news for investors already struggling to find positive catalysts after the U.S. stepped up punitive tariffs on $200 billion in annual imports from China, and Donald Trump warned the trade standoff will “get worse” if there’s retaliation. The president accused China of backing out of a deal that was taking shape, saying Beijing reneged on an agreement to enshrine a wide range of reforms in Chinese law.

To contact the reporter on this story: Elena Popina in New York at epopina@bloomberg.net

To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Chris Nagi

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