Market Watch: Stock Futures Steady Ahead of U.S.-China Talks and Upcoming May Inflation Report – Live Updates!

Traders are on edge as they watch the stock market closely. On a recent Tuesday night, stock futures showed little change. Investors are waiting to hear more about ongoing trade talks between the U.S. and China. These discussions could reshape trade policies.

Futures for the S&P 500 remained steady, while Nasdaq 100 futures crept up slightly. The Dow Jones futures dipped a bit, losing two points. There’s a lot of focus on how U.S. officials and their Chinese counterparts are handling trade issues. Treasury Secretary Scott Bessent left the talks, but Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer stayed on to continue negotiations. Lutnick mentioned that discussions might extend into Wednesday if needed.

This ongoing dialogue is crucial for investors. Any news or changes to trade policies can create jitters in the market. Back in May, both nations decided to pause high tariffs on each other, but a solid agreement is still pending.

On that Tuesday, the stock market had some positive news. The S&P 500 climbed about 0.6%, marking its third straight day of gains. It’s now less than 2% away from its all-time high from February. The Nasdaq Composite also added 0.6%, and the Dow increased by 0.3%. However, some experts caution that worries about tariffs and climbing bond yields could still put pressure on the market.

Deutsche Bank’s chief economist, David Folkerts-Landau, raised a red flag, noting that if the current U.S. administration feels confident due to the market recovery, it might start pushing hard on tariffs again. Such a move could spark retaliation from China and Europe, similar to events seen earlier this year. He also pointed out concerns about rising long-term bond yields and their impact on global finances.

Folkerts-Landau said, “With many countries facing unsustainable debt situations, the year 2025 may lead to an inevitable reckoning.”

Investors are now looking toward Wednesday, when the U.S. Bureau of Labor Statistics will release its consumer price index for May. Economists expect a modest uptick of 0.2% compared to the previous month, with an annual increase of 2.4%. A surprising report could unsettle the markets, which are already jittery about inflation.

Sam Millette, a director at Commonwealth Financial Network, said it’s unlikely this report will shift the Federal Reserve’s current cautious approach to interest rates. “We should watch for either a modest rise in price pressure or unexpected results,” he noted.

On the earnings side, traders are also eager for results from companies like Chewy and Oracle, which could provide further insights into market trends.

In summary, all eyes are on the evolving trade talks and upcoming economic data, both of which will significantly influence market sentiment in the coming days.



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