(C) Reuters. FILE PHOTO: A security camera is seen next to signage outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly
By Devik Jain and Shreyashi Sanyal
(Reuters) – U.S. stock index futures were mixed on Tuesday, as investors returned from a long holiday weekend to focus on Beijing’s crackdown on several U.S.-listed Chinese firms, while energy stocks rose as oil prices touched multi-year highs.
Didi Global Inc shares slumped as much as 25% in premarket trading after Chinese regulators ordered over the weekend the company’s app be taken down days after its $4.4 billion listing on the New York Stock Exchange.
Other U.S.-listed Chinese e-commerce firms, including Alibaba (NYSE:BABA) Group, Baidu Inc (NASDAQ:BIDU) and JD (NASDAQ:JD).com, fell between 1% to 2.7%, with the Chinese crackdown also weighting on the global markets.
Investors, meanwhile, waited for clues from the U.S. Federal Reserve’s policy minutes on when quantitative easing might be tapered. It will be released on Wednesday.
Wall Street is sensitive to any hints of a hawkish shift in the Fed’s tone, as market participants have moved between “value” and “growth” stocks in the past few sessions on fears that a potentially stronger-than-expected economic recovery could force the central bank to cut back its support.
The benchmark S&P 500 index notched record closing highs seven straight days on Friday, its longest streak of consecutive record closes since June 1997, helped by tech-heavyweights Microsoft Corp (NASDAQ:MSFT), Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) Inc.
Oil prices hit multi-year highs after talks between OPEC+ producers collapsed, with major energy companies including Occidental Petroleum (NYSE:OXY) Co, Chevron Corp (NYSE:CVX) and APA Corp rising between 0.8% and 2.3%. [O/R]
Attention will also be on ISM non-manufacturing PMI data for June, which is expected to ease after hitting a record high of 64 in May. The report is due at 10 a.m. ET.
Second-quarter earnings season is set to begin next week with big banks, while investors also watched for progress on President Joe Biden’s infrastructure bill.
U.S.-listed shares of China’s top two videogame streaming sites Huya (NYSE:HUYA) and DouYu fell 2.6% and 7.3%, respectively, after China’s antitrust regulator said it will block Tencent Holdings (OTC:TCEHY) Ltd’s plan to merge the firms.
Mobile gaming firm- Bilibili (NASDAQ:BILI) Inc fell 3.9%.
Futures mixed as U.S.-listed Chinese firms drop on regulation worries
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