US stocks were poised for a steep retreat from their record highs on Wednesday, as concerns over US export curbs on China and President Donald Trump's stance on Taiwan put pressure on the tech sector. Futures on the tech-heavy Nasdaq 100 led the declines, down 1.4%, while S&P 500 futures sank 1% and Dow Jones Industrial Average futures slid 0.3%.

The pullback in stocks was driven by worries about risks to tech companies, outweighing the optimism surrounding potential interest-rate cuts that have fueled the recent market rally. Heavyweights in the tech sector, like chipmaker Nvidia, were particularly affected, with the company's shares down over 4% in pre-market trading.

One contributing factor to the market anxiety is the Biden administration's indication that it is considering imposing tougher restrictions on companies still providing advanced chip technology to China, in spite of existing export curbs. ASML, a Dutch chip gear maker and potential target, saw its shares drop over 8% following the announcement, despite posting solid quarterly earnings.

In addition, President Trump's recent questioning of US defense support for Taiwan in a Bloomberg interview further added to the concerns. Trump suggested that the island, claimed by China, should pay for US protection. This remark caused chipmaker TSMC's shares to fall almost 5% during pre-market trading in New York.

Despite the gloomy outlook for the tech sector, a set of positive corporate results could potentially turn the tide, as quarterly earnings across various industries have been better than expected so far. Johnson & Johnson, United Airlines, and Discover are among the companies reporting earnings on Wednesday.

Investors are also keeping an eye on economic data, including housing starts and industrial production figures. Additionally, the release of the Federal Reserve Beige Book is anticipated to provide insights for investors to gauge the likelihood of another rate cut in 2024.

Meanwhile, the latest BofA monthly fund manager survey revealed that 77% of respondents believe that an election sweep in November would result in higher bond yields. Additionally, 52% of the surveyed fund managers think that a sweep would lead to a higher US dollar, while 48% believe it would be positive for US stocks.

Overall, the uncertainty surrounding US export curbs, President Trump's stance on Taiwan, and the upcoming election sweep have contributed to a pullback in US stocks from their record highs. Investors are closely observing corporate earnings and economic data to assess the market's future direction.