US futures are lower this morning but well-off earlier levels. S&P Futures were trading down around 2% before a story noting that China is open to trade talks if the US shows more respect and addresses concerns over sanctions and Taiwan, among other items. It didn’t seem all that different from prior commentary as China has already expressed a willingness for dialogue, but it was enough to quickly recoup about half the losses. Futures have been moving lower again as we approach the Open. A main source of initial pressure came from Nvidia’s post-market announcement of further export restrictions. The news is pressuring the semi sector broadly. Chinese macro data was strong but is being largely discounted and Powell speaks later today.

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