U.S. stock futures lower after Trump tweet, weak China data

Dow tumbles more than 500 points as China retaliates on tariffs

Wall Street hammered by China's plan to retaliate on trade

At the heart of the selloff were shares in major technology companies including Apple Inc as well as chipmakers, manufacturers and retailers that draw a large share of their revenue from China.

US stocks on Tuesday reclaimed some of the ground lost in the prior day's steep sell-off, with tariff-sensitive technology stocks leading the S&P 500 and the Nasdaq higher as investors were heartened by a tonal shift in U.S.

"Investors are increasingly anxious that an anticipated second-half profit rebound may now evaporate, as President [Donald] Trump's threat to tariff the remaining $325 billion in Chinese imports would disproportionately target consumer products like iPhones, thereby posing a greater threat to the consumption-driven USA economy", he said. "The Chinese will suffer GDP losses and so forth". Hong Kong equities fell more than 1% as the market re-opened after a holiday.

The yield on 10-year Treasuries remained at 2.41%.Australia's 10-year bond yield was at 1.70%.

The yuan's advance came after a front-page article in a newspaper backed by the People's Bank of China cited analysts saying that the currency won't weaken continuously or by a large amount.

"US stocks are recovering from yesterday's drop in early action, which was the largest one-day fall since January, with the escalated trade tensions between the United States and China continuing to be eyed", Charles Schwab analysts said.

"Our expectation is that an agreement is made, but the challenge then becomes the governance of that agreement", Liam Spillane, head of emerging-markets debt at Aviva Investors, said in an interview in Sydney.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 14, 2019. But he added that the deal would only happen when "the time is right". The new penalties also took aim at American farmers, driving down soybean and cotton prices.

Earnings this week include Vodafone, Alibaba, Tencent, Cisco, Nvidia.New York Fed President John Williams speaks at an event in Zurich. Bank of Indonesia has an interest rate decision on Thursday.

Earnings this week include Alibaba, Tencent, Cisco, Nvidia.China industrial production and retail sales are slated for Wednesday, the same day as USA retail sales and industrial production.Bank of Indonesia has an interest rate decision on Thursday.Australian unemployment is out on Thursday.

At 8:44 a.m. ET, Dow e-minis were down 495 points, or 1.91 per cent. S&P 500 e-minis were down 56 points, or 1.94 per cent and Nasdaq 100 e-minis were down 195.75 points, or 2.57 per cent.

Both the Dow Jones Industrial Average and the S&P 500 index fell by more than 2 percent in early trading on Monday, while the Nasdaq Composite index had lost nearly 3 percent of its value by 11 a.m. ET.

The yen was at 109.63 per dollar after falling 0.3%. The offshore yuan held at 6.9079 per dollar. The Bloomberg Dollar Spot Index gained 0.1%.The euro bought $1.1203, little changed. Australia's 10-year bond yield fell about two basis points to 1.71%.

West Texas Intermediate crude fell 1.1% to $61.13 a barrel.Gold was steady at $1,297.54 an ounce.

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