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Market Snapshot: U.S. stock futures slip ahead of tech results as China crackdown casts shadow

U.S. stock futures slipped Tuesday ahead of a barrage of tech-sector earnings, with a Chinese regulatory crackdown casting an overhang over the market.

What’s happening

Futures on the Dow Jones Industrial Average
YM00,
-0.39%

dropped 210 points;

Futures on the S&P 500
ES00,
-0.29%

lost 0.5%;

Futures on the Nasdaq 100
NQ00,
-0.12%

slipped 0.3%.

U.S. stocks on Monday closed at a record high for the second straight session. The Dow Jones Industrial Average
DJIA,
+0.24%

and the S&P 500
SPX,
+0.24%

each rose 0.2%, and the Nasdaq Composite
COMP,
+0.03%

inched higher to also set a fresh record.

What’s driving the market

A late-session dive for the Hang Seng put pressure on risk assets across the globe. The Hang Seng
HSI,
-4.22%

ended 4.2% lower, its second consecutive drop of more than 4%, amid China’s unrelenting regulatory crackdown.

Meituan
3690,
-17.66%

shares dived after China published rules requiring online food platforms to pay minimum wage, but the selling was broad-based, with technology giants Tencent
700,
-8.98%

and Alibaba
9988,
-6.35%

BABA,
-7.15%

each seeing sharp declines.

The China worries have taken the shine away from a strong earnings season.

“This crackdown on private businesses from China is significantly denting market sentiment despite a better-than-expected earnings season so far,” said Pierre Veyret, technical analyst at ActivTrades.

Tesla
TSLA,
+2.21%

shares rose 2% in early premarket action as the electric vehicle reported a surprisingly strong profit.

After the close, U.S. tech giants Alphabet
GOOG,
+1.33%
,
Apple
AAPL,
+0.29%

and Microsoft
MSFT,
-0.21%

report quarterly results.

The Federal Reserve kicks off its two-day meeting, and the economics calendar for Tuesday includes durable-goods orders data for June, consumer confidence index for July and the latest Case-Shiller home price index.

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