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By Bloomberg

U.S. stock-index futures retreated as Chinese futures tumbled after regulators updated rules on margin trading, while companies from Advanced Micro Devices Inc. to American Express Co. slid on earnings reports.

Advanced Micro Devices Inc. slumped 9.8 percent after saying it is hard to see whether the second half will be “substantially better” than the first half of the year. American Express lost 2 percent after its quarterly results missed estimates.

E-mini contracts on the S&P 500 expiring in June fell 0.5 percent to 2,090.50 at 8:16 a.m. in New York, reversing an earlier gain of as much as 0.1 percent. Dow Jones Industrial Average futures fell 96 points, or 0.5 percent, to 17,945.

The news out of China “is hammering stocks as we approach the U.S. open,” Craig Erlam, London-based analyst at Oanda Corp, said in an e-mailed note. “What we’re seeing right now is a combination of panic and technical levels being wiped out and exacerbating the move lower.”

Chinese stock-index futures tumbled in after-hours trading after regulators clamped down on the use of shadow financing to buy equities and expanded the supply of shares available for short sellers. The China Securities Regulatory Commission banned the margin trading businesses of brokerages from taking part in umbrella trusts, while the Securities Association of China said fund managers can lend shares for short selling.

Umbrella Trusts

Futures in Shanghai and Hong Kong plunged following the release, with contracts on the Hang Seng Index down more than 2 percent.

Investors in China have ramped up wagers on stocks by borrowing through umbrella trusts, which allow for more leverage than brokerage financing. Permitting mutual funds to lend their holdings to short sellers would make it easier for bearish traders to bet on a retreat after the benchmark Shanghai Composite Index more than doubled over the past 12 months.

The S&P 500 was little changed yesterday after approaching its all-time high. While equity indexes from Asia to Europe have climbed to multiyear highs in recent days, the S&P 500 and Dow last hit theirs on March 2, the same day the Nasdaq Composite Index topped 5,000 for the first time in 15 years. The 32-day stretch without celebrating a fresh high is the S&P 500’s longest since July 2013.

The S&P 500 has been stuck in a range of 52 points since March 20 when it last neared its record, as weaker-than-forecast data from hiring to manufacturing elevated concern about earnings while at the same time bolstered the case for keeping interest rates lower for longer.

Economic Data

Investors are weighing economic reports for clues on the timing of the Fed’s first rate increase since 2006. Fed Chair Janet Yellen has said that while rates will probably rise this year, any decision depends on economic data.

The University of Michigan’s consumer sentiment index probably rose in April, economists expect a report will show this morning. The index of U.S. leading economic indicators probably increased in March more than in February.

Analysts predict earnings for S&P 500 companies fell 5.6 percent in the first quarter, cutting projections amid concern over a surging dollar and worse-than-forecast economic reports.

American Express lost 2 percent after its results missed estimates as the dollar strengthened and the lender ended its relationship with Costco Wholesale Corp.

Schlumberger Ltd. gained 2.3 percent after the world’s largest oilfield services provider said it will cut an additional 11,000 jobs.