Dow’s stock futures fell in early morning trading on Monday as the market looks set to shed some of the historically strong gains seen so far in November.
Futures on the Dow Jones Industrial Average fell 244 points. Meanwhile, S&P 500 futures and Nasdaq 100 futures traded lower.
Futures took a leg down after the Trump administration is weighing blacklisting Chinese leading chipmaker SMIC as well as national offshore oil and gas producer CNOOC. The move would limit their access to American investors and escalate tensions with China before President-elect Joe Biden takes over.
Despite the overnight weakness, major equity averages are poised to wrap up a strong month. The blue-chip Dow has risen 12.9% so far this month, on pace for its best monthly performance since January 1987, as promising vaccine developments boosted confidence of a smooth economic reopening. The S&P 500 and the Nasdaq have climbed 11.3% and 11.9%, respectively, in November, both on track to post their biggest monthly advance since April.