U.S. stock futures were lower on Friday as investors digested a drop in semiconductor shares alongside weak data out of China.
Chipmakers fell broadly after weak quarterly results from Broadcom. The VanEck Vectors Semiconductor ETF (SMH) fell more than 3% in the premarket, led by a 9.6% plunge on Broadcom. The chipmaker posted weaker-than-expected revenue for the previous quarter and cut its guidance for 2019, citing “broad-based ” demand weakness and the U.S. crackdown on Huawei.
Other semiconductor stocks also fell. Micron Technology, Advanced Micro Technology and Applied Materials all traded down more than 2.5%. The tech sector also dropped broadly as the Technology Select Sector SPDR ETF (XLK) pulled back 1%.
Sentiment on Wall Street was also dampened by disappointing industrial data from China. Industrial production in China rose 5% last month on a year-over-year basis, the slowest pace of growth in 17 years. Chinese shares fell overnight following the data release. Retail sales also was below expectations, although the figures are better than the previous month.
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