Stock futures lower on recession worries

A TV screen shows the numbers after the closing bell at the New York Stock Exchange (NYSE) on August 14, 2019 in New York City. - It was an ugly day for Wall Street, as stocks plummeted Wednesday amid worsening economic fears after US Treasury yields briefly inverted, flashing a warning sign for a coming recession. But US President Donald Trump once again blamed the Fed for the economic woes and the yield curve inversion, saying the US central bank is a bigger threat than China and is "clueless." The Dow Jones Industrial Average fell 3.1 percent to finish at 25,479.42, a loss of about 800 points -- its worst day of 2019. (Photo by Johannes EISELE / AFP) (Photo credit should read JOHANNES EISELE/AFP/Getty Images)

NEW YORK: U.S. stock index futures fell on Wednesday after moves in the U.S. bond market returned investors to worrying about the risk of recession as a bruising U.S.-China trade war drags on.

The U.S. yield curve inverted to levels not seen since 2007, triggering a selloff on Wall Street.

Shares of banks, which typically come under pressure in a low interest rate environment, fell in premarket trading, with Bank of America Corp (BAC.N), Citigroup Inc (C.N), Goldman Sachs Group Inc (GS.N) and JPMorgan Chase & Co (JPM.N) down nearly 1%.

The recent bout of selling has dragged the benchmark S&P 500 .SPX 5.5% away from a record high hit in late July.

Markets have been roiled by persistent trade tensions after Beijing announced retaliatory tariffs on U.S. goods and President Donald Trump ordered the U.S. companies to look at alternatives to doing business with China.

Investors are also awaiting the release of the government’s closely watched monthly jobs report and manufacturing data next week to gauge the pace of interest rate cuts.

At 7:34 a.m. ET, Dow e-minis 1YMcv1 were down 65 points, or 0.25%. S&P 500 e-minis EScv1 were down 5.5 points, or 0.19% and Nasdaq 100 e-minis NQcv1 were down 20.5 points, or 0.27%.

Among other stocks, Tiffany & Co (TIF.N) rose 3% after the luxury retailer beat quarterly profit estimates as it cut marketing spending.

Shares of Hewlett Packard Enterprise Co (HPE.N) jumped 4.3% after it beat profit estimates and raised its 2019 adjusted profit forecast.

Autodesk Inc’s (ADSK.O) slumped 12.2% after the AutoCAD software maker cut its full-year earnings forecast.