U.S. stock futures slipped early Monday following a strong nine-day run by the S&P 500 index. That winning streak was the index’s longest since November 2004. Investors are now shifting focus to policy updates and international developments.
Futures for the S&P 500, Nasdaq, and Dow Jones all showed modest declines in premarket trading. Despite recent gains, markets face renewed uncertainty. The drop comes as investors await key updates on interest rates and global trade.
U.S. markets eye Fed policy and China trade talks closely. While flying aboard Air Force One, former President Donald Trump shared updates on trade discussions. He confirmed talks are ongoing with Chinese officials. However, he has no plans to meet Chinese leader Xi Jinping this week.
China has suggested the use of special envoys for these discussions. Yet, U.S. officials prefer direct negotiations between national leaders. According to the South China Morning Post, Chinese officials find the envoy plan risky and uncertain. This ongoing diplomatic tension continues to weigh on investor sentiment.
Meanwhile, investors are also watching the Federal Reserve. The central bank is expected to announce its decision on interest rates later this week. According to CME Group’s FedWatch tool, there’s a 98.2% chance rates will remain unchanged. That projection suggests the Fed may hold off on further tightening for now.
At the same time, bond yields also remained in focus. The yield on the 10-year Treasury reached 4.31%, while the two-year sat at 3.82%. These figures often reflect investor sentiment around inflation and interest rate policy.
U.S. markets eye Fed policy and China trade talks closely as multiple risks emerge. Short-term sentiment may remain cautious in the coming days.
Overall, U.S. markets eye Fed policy and China trade talks closely, with investors reacting quickly to both domestic and global signals.
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