Stock market news today: Nasdaq futures fall as China curbs risk shocks tech

US stocks were poised for a steep pullback from record highs on Wednesday as tech came under dual pressure from worries about US export restrictions to China and Donald Trump’s stance on Taiwan.

Nasdaq 100 futures (NQ=F) were lower, down 1.2%, while S&P 500 futures (ES=F) were down 0.7%. Dow Jones Industrial Average (YM=F) futures fell roughly 0.2% after the blue-chip index rose 700 points on Tuesday to close at an all-time high.

Stocks are retreating as worries about risks to tech names eclipse high hopes for interest rate cuts that have fueled gains in recent days. Those concerns weighed on the heavyweights, whose AI-fueled gains have helped propel the S&P 500 to new record highs this year, with chipmaker Nvidia ( NVDA ) falling more than 3% in premarket trading.

The Biden administration has told allies it is looking to impose tougher restrictions on companies that still make advanced chip technology available in China despite existing export restrictions, Bloomberg reported. Shares of ASML (ASML, ASML.AS), cited as a potential target, fell roughly 7% after the Dutch chipmaker posted solid quarterly earnings.

Meanwhile, presidential candidate Trump questioned US defense support for Taiwan in a Bloomberg interview, suggesting the Chinese-claimed island should pay for US defense. Shares of chip maker TSMC ( TSM, 2330.TW ) fell more than 3% in premarket trading in New York, wiping roughly $30 billion off its market value in Taiwan as stocks there fell.

A new set of corporate results could turn the tide, given that quarterly earnings in many sectors came in better than expected in the early days of the season. Johnson & Johnson ( JNJ ), United Airlines ( UAL ) and Discover ( DFS ) are on Wednesday’s list.

Also on deck are data on housing starts and industrial production, plus the release of the Federal Reserve’s Beige Book that could provide clues for investors calculating the odds of a second rate cut in 2024.