S&P 500 futures remain notably lower trading 38 points, or 1.4%, below fair value. Meanwhile, the tech-heavy Nasdaq 100 futures trade 1.9% below fair value.
Equity indices in the Asia-Pacific slumped broadly under the weight of large losses that were triggered by reports that Huawei Technologies CFO Meng Wanzhou was arrested in Canada on allegations the company violated U.S. trade sanctions on Iran. The real rub is that she is expected to be extradited to the U.S. to face the charges. This development has caused a great deal of angst over the idea that it will greatly diminish, if not kill, the chances of the U.S. and China reaching a trade deal in the next 90 days. That thought and worries about potential retaliatory actions by China have undercut a wide range of stocks, but particularly technology issues and the stocks of companies tied into the smartphone and telecom equipment supply chains.
