US stock futures pulled back on Monday after China added fuel to simmering trade tensions with the US, setting investors on guard as they turned the page on a bullish May.
S&P 500 futures (ES=F) dropped roughly 0.6%, while those on the Dow Jones Industrial Average (YM=F) fell 0.5%. Contracts tied to the tech-heavy Nasdaq 100 (NQ=F) retreated 0.7%.
China hit back at President Trump’s claim that it has violated the Geneva tariff truce on Monday, blaming the US instead for failing to keep up its end of the deal. The mutual finger-pointing has undermined hopes for a revival of trade talks between the two top economies and stoked lingering trade uncertainty.
42,134.00
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(-0.38%)
As of 6:18:44 AM EDT. Market Open.
YM=F ES=F NQ=F
Last week, a federal court struck down significant portions of Trump’s duties, including sky-high levies on Chinese imports, only for a higher court to temporarily reverse that decision a day later, reinstating the duties while legal proceedings continue.
The US dollar (DX-Y.NYB) fell as markets assessed the shift in trade-war risks, with rising inflation and slowing growth in particular focus. Meanwhile, gold (GC=F) futures rose amid demand for safer assets, as Ukraine’s dramatic drone strikes on Russia on Sunday added geopolitical worries to trade fears.
In US stocks, the tepid start to June follows a standout May: The S&P 500 (^GSPC) rallied more than 6% in its best month since November 2023 and best May since 1990. The Nasdaq Composite (^IXIC) soared 9%, and the Dow (^DJI) notched a 4% gain. Tech stocks led the charge, as investor optimism around AI and resilient economic data fueled risk appetite.
Against this backdrop, all eyes now turn to a critical slate of economic data this week — most notably the May nonfarm payrolls report due Friday, which will offer fresh clues on how trade frictions and interest rate expectations are shaping the broader US economy.
Earnings season is almost wrapped, with results from CrowdStrike (CRWD), Broadcom (AVGO), DocuSign (DOCU), and Lululemon (LULU) the main points of interest in a smaller week of reports.
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