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* Tariff increase on $200 bln of Chinese goods takes effect
* Two countries holding last-ditch talks in Washington
* Symantec plunges on profit warning, CEO departure
* Ford gains on Bank of America Merrill upgrade
* Futures down: 0.60%, S&P 0.71%, Nasdaq 0.79% (Changes comment, updates prices)
By Amy Caren Daniel
May 10 (Reuters) - Wall Street was set to open lower on Friday, as investors fretted over the possibility that the trade dispute between the United States and China may linger, even as the two sides held last-minute talks to seal a deal.
President Donald Trump said he was in “absolutely no rush” to finalize a trade agreement with China, after the United States increased duties to 25% on $200 billion worth of Chinese goods overnight.
But even as Beijing threatened retaliation, negotiators in Washington agreed to stay on for a second day, raising hopes that a deal would be reached.
“Everyone knows that the United States and China are talking, and are looking at the tariffs as a bargaining chip. It’s all about leverage and who outmaneuvers whom,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.
“In the end Trump will get a deal done, but in the interim we have to put up with his way of doing it. We are going to have a lot of volatility, until we have clarity.”
Boeing Co, the single largest U.S. exporter to China, declined 0.7% in premarket trading, while Caterpillar Inc dropped 1.3%.
Chipmakers, which get a large chuck of their revenue from China, also slipped, with Nvidia Corp, Micron Technology Inc and Intel Corp trading down between 0.5% and 1.5%.
The spike in tensions this week has triggered a flight to safety and triggered a 2.5% drop in the S&P 500 so far this week, setting the benchmark index to post its worst weekly decline since December.
At 8:33 a.m. ET, Dow e-minis were down 155 points, or 0.6%. S&P 500 e-minis were down 20.5 points, or 0.71% and Nasdaq 100 e-minis were down 59.75 points, or 0.79%.
Amid market uncertainty, ride-hailing company Uber Technologies Inc is set to make its market debut after raising $8.1 billion in the largest U.S. IPO since 2014.
Symantec Corp plunged 15.8% after the antivirus software maker issued a profit warning and unexpectedly announced that its chief executive officer would step down.
Shares of Ford Motor Corp rose 1.4% after report that Bank of America Merrill upgraded the carmaker’s stock to “buy” from “neutral”. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila)