US equity futures dropped ahead of Wednesday's opening bell, with futures of technology-heavy Nasdaq Composite leading the losses after sector heavyweight Nvidia (NVDA) revealed an expected $5.5 billion charge in fiscal Q1 linked to exports to China.

Dow Jones Industrial Average futures slipped 0.2%, S&P 500 futures fell 0.9%, and Nasdaq futures were down 1.7%.

The chipmaker said late Tuesday the estimated charge relates to its H20 product line after the US government mandated it to secure an export license for China, Hong Kong, Macau, and D5 countries.

Oil prices were higher, with front-month global benchmark North Sea Brent crude up 1.1% at $65.39 per barrel and US West Texas Intermediate crude 1.5% higher at $62.22 per barrel.

Retail sales, released at 8:30 am ET, increased by 1.4% in March following a 0.2% uptick in February, in line with estimates compiled by Bloomberg.

Forecasters see a 0.2% drop in industrial production for March, due at 9:15 am ET, versus a 0.7% gain previously.

The housing market index, slated for 10 am ET release, is expected to decline to 38 in April from 39 previously.

In other world markets, Japan's Nikkei closed 1% lower, Hong Kong's Hang Seng ended 1.9% lower, and China's Shanghai Composite finished 0.3% higher. Meanwhile, UK's FTSE 100 fell 0.3%, and Germany's DAX index slipped 0.5% in Europe's early afternoon session.

In equities, shares of Nvidia were 6.9% lower pre-bell. Ostin Technology Group (OST) shares slumped more than 35% after the company priced a $5 million registered offering of class A ordinary shares and warrants.

On the winning side, United Airlines (UAL) shares rose 6% after the carrier posted improved Q1 financial results.