(Reuters) – Wall Street was set to open lower on Wednesday, as poor economic data from China and Germany put the focus back on the impact of a bruising Sino-U.S. trade war which is pushing some major economies towards the brink of recession.

The outlook for Germany’s export reliant economy was also grim and Chinese industrial output growth cooled to a more than 17-year low, adding to headwinds for U.S. multinationals that rely on global demand. [nL8N25A1D1][nL4N25A0U7]

The U.S. bond market showed red flags, with two-year Treasury yields rising above those for 10-year paper for the first time since 2007, pointing to the risk of recession.

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Wall Street’s main indexes surged more than 1.5% on Tuesday after Washington delayed the introduction of tariffs on some Chinese consumer goods. [nL2N2590HM]

Futures pointed to a drop of about 1% at the open on Wednesday.

“It’s almost as if global investors either don’t buy the tariff delay as a sign of real progress in the U.S.-China trade war or have been too consumed by further evidence of global economic weakness to care,” BMO Capital Markets strategist Stephen Gallo said.

At 7:00 a.m. ET, Dow e-minis 1YMcv1 were down 239 points, or 0.91%. S&P 500 e-minis EScv1 were down 25.5 points, or 0.87% and Nasdaq 100 e-minis NQcv1 were down 75.25 points, or 0.97%.

Interest-rate sensitive lenders were among notable losers before the bell. Bank of America Corp (BAC.N), Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N), Goldman Sachs (GS.N), Wells Fargo & Co (WFC.N) and Morgan Stanley (MS.N) were all down between 1.5% and 2.4%.

Tariff sensitive chipmaker, which staged a comeback a day earlier, were also down. Micron Technology Inc (MU.O), Broadcom Inc (AVGO.O) and Nvidia Corp (NVDA.O) among others slipped more than 1%.