U.S. stock index futures were lower on Thursday morning after President Donald Trump said China "broke the deal" at a rally Wednesday evening, fueling worries the U.S. and China will be unable to hatch a trade agreement before new tariffs go into effect at midnight.
Futures for the Dow Jones Industrial Average stepped back 194 points, or 0.8%, to 25,820
Futures for the S&P 500 sank 21.75 points, or 0.8%, at 2,865.50
NASDAQ futures slid 76 points, or 1%, to 7,571.50
Shares of Intel fell another 3% in pre-market on Thursday after sinking nearly 5% in the previous session as the chipmaker said it sees both revenue and earnings per share growing in the "single digit" percentage range over the next three years.
BMO downgraded the stock to market perform from outperform on Thursday, saying it sees the stock "treading water at best."
China claimed it will retaliate if the higher levies are imposed. However, the Chinese delegation is still in Washington this week to negotiate a deal. Despite Trump's ramped-up rhetoric, the White House claimed on Wednesday China still wants to make a deal, which kept the market temporary afloat.
Traders will also keep an eye on upcoming data releases. There will be international trade figures, weekly jobless claims, and producer price index numbers out this morning.
In terms of earnings, Softbank, Norwegian Cruise Line, Booking Holdings, Dropbox, and News Corp. will be updating investors throughout the day.
Overseas, the Nikkei 225 skidded 0.9% Thursday, while in Hong Kong, the Hang Seng Index plunged 2.4%
Oil prices dipped 20 cents to $61.92 U.S. a barrel.
Gold prices gained 60 cents at $1,282 U.S. an ounce.