U.S equity futures slipped lower again Friday, potentially pulling shares into the red for a fourth consecutive session, as investors continue to grapple with the odds of a November rate hike while tracking developments in the intensifying tech trade war between Washington and Beijing. 

Tech stocks, lead to the downside by a two-day, $200 billion slump for Apple  (AAPL) – Get Free Report, were the main drag on U.S. indices Thursday as investors grew increasingly concerned that China’s reported ban on the use of iPhones by government employees could be a precursor for a broader set of trade restrictions in the tech sector.

The Commerce Department added to that discussion late Thursday when it said it would probe details of a new chip found in state-backed Huwaei’s ‘Mate 60’ smartphone to see if its components violated U.S. trade sanctions.  

The slump in tech stocks was exacerbated by a spike in Treasury bond yields, which were tied in part to better-than-expected jobs data. The Labor Department reported that weekly applications for jobless benefits fell to the lowest levels since February last week, while the final ISM activity survey for August showed robust hiring intentions and rising input prices.

Collectively, the data suggest ongoing inflation pressures into the autumn months which could compel the Federal Reserve to continue its rate-hike effort.

Treasury yields eased overnight, however, after Dallas Fed President Lorie Logan said late Thursday that while “labor market conditions also suggest we haven’t finished the job of restoring price stability … n today’s complex economic environment, returning inflation to 2% will require a carefully calibrated approach – not endless buckets of cold water.”

The CME Group’s FedWatch pegs the chances of a November hike at 41.8%, with the odds of a Fed pause later this month in Washington at around 93%.

Benchmark 10-year note yields slipped to 4.244% in the overnight session, while 2-year notes were marked at 2.940% after trading firmly above the 5% mark earlier this week.

The U.S. dollar index, which is on pace to extend its longest weekly win streak since 2014, was marked 0.05% lower at $105.003.

Heading into the start of the trading day on Wall Street, futures contracts tied to the S&P 500 are priced for a 7 point opening bell gain while those tied to the Dow Jones Industrial Average suggest a 63 point pullback. Contracts tied to the tech focus Nasdaq were indicating a 35 point decline.

Overnight in Asia, the Nikkei 225 fell 1.16% to close out the week following a downward revision to second quarter GDP, which was now pegged at a 1.2% advance. The region-wide MSCI ex-Japan benchmark was little-changed at 502.80 points heading into the close of trading.

In Europe, the Stoxx 600 fell 0.54% in early Frankfurt trading while Britain’s FTSE 100 was down 0.36%.

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