Dow industrials set to take a breather after their 300-point tumble

U.S. stock futures showed little change early Tuesday, suggesting the beaten-up Dow industrials may catch their breath after the prior day’s 328-point drop that was blamed on trade-related angst.

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What did the benchmarks do?

Dow Jones Industrial Average futures were up 12 points, or less than 0.1%, to 24,291, while S&P 500 futures rose 0.20 point to 2,722.50. Nasdaq-100 futures added 3.25s point to 7,076.75.

On Monday, the Dow tumbled by 328.09 points, or 1.3%, to 24,252.80, posting its biggest one-day drop since May 29, and closing at its lowest level since May 4. The blue-chip gauge also ended below its 200-day moving average, a closely watched level, for the first time since June 2016, as investors fretted about President Donald Trump’s latest threats against America’s trade partners, as well as the potential for more regulatory measures targeting China.

The S&P fell 1.4%, enduring its biggest daily decline since April 6 and its lowest close since May 31. The tech-heavy Nasdaq Composite shed 2.1%, its biggest one-day percentage loss since April 6, as it was whacked by reports of new efforts to block Chinese investment in and sales to U.S. tech firms.

What’s driving markets?

Investors are remaining concerned that trade tensions between the U.S. and major trading partners such as China and the European Union could develop into a big drag on the global economy.

They’re also tracking some disagreement and uncertainty within the Trump administration over trade-related matters.

Peter Navarro, the president’s trade adviser, said Monday a forthcoming Treasury Department report will focus on China, and with respect to other countries, there’s “nothing on the table.” Navarro spoke on CNBC following a tweet by Treasury Secretary Steven Mnuchin, which said investment restrictions will apply to all countries attempting to steal U.S. technology, not just China.

What are strategists saying?

“Trump’s agenda of protectionist measures is threatening U.S. and global growth. Economists from around the world are expressing their concerns that a global trade war could send the U.S. back to a recession, and investors are taking a defensive approach as a response,” said Konstantinos Anthis, head of research at ADS Securities, in a note.

“Even though the Dow Jones futures suggest a slightly positive opening, the bias for the day looks negative,” he said.

What are other markets doing?

European stocks were rallying, while Asian markets finished mixed.

Oil futures were higher, and gold futures  were lower after etching a bearish technical pattern known as a “death cross.”

The ICE U.S. Dollar Index was little changed.

Which stocks are in focus?

Harley-Davidson Inc.’s stock may try to recover after sliding 6% Monday. The motorcycle maker said it would have to eat the “substantial” short-term costs of recent EU tariffs, but it planned to move some production overseas to ease the burden over the long term.

Shares in home builder Lennar Corp. and Schnitzer Steel Industries Inc.  , a steel manufacturer and scrap-metals recycler, are likely to see active trading as they’re among the companies expected to post earnings before the open.

Salesforce.com Inc. shares could be in the spotlight after employees reportedly signed a petition asking CEO Marc Benioff to re-evaluate the software company’s contracts with U.S. Customs and Border Protection given the Trump administration’s recent border crackdown.

Which economic reports are on the calendar?

The Case-Shiller U.S. home price index for April is due at 9 a.m. Eastern Time, followed by a reading on consumer confidence for June at 10 a.m. Eastern. Economists polled by Market expect a reading of 128.0 for the confidence index.

Atlanta Federal Reserve President Raphael Bostic is slated to take part in an armchair chat in Birmingham, Ala., at 1 p.m. Eastern, and Dallas Fed President Rob Kaplan is due to participate in a Q&A in the Houston area at 1:45 p.m. Eastern.

Check out: MarketWatch’s Economic Calendar

Barbara Kollmeyer contributed to this report