US stock futures showed little movement early Tuesday as market participants awaited fresh developments from ongoing trade negotiations between the United States and China.
The Dow Jones Industrial Average futures slipped 15 points, while S&P 500 and Nasdaq 100 futures were slightly higher.
These modest shifts follow a relatively quiet session on Wall Street. On Monday, the S&P 500 edged up nearly 0.1% for a second consecutive gain, while the Nasdaq Composite added around 0.3%. The Dow Jones ended just below the flatline.
Investors are closely watching the renewed US-China trade talks, which resumed in London on Tuesday morning. Officials from both nations—including US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng—are engaging in high-level discussions centered on tariffs and export controls, especially concerning critical minerals vital to defense and technology industries.
Last month, both countries agreed to temporarily reduce tariffs, a move seen as a significant step toward easing tensions. Analysts believe that ongoing dialogue is helping to stabilize markets.
“Most people are assuming that some conversation is better than nothing, that we’re making progress,” said Adam Parker, founder of Trivariate Research. “Because of that, people aren’t … wanting to sell stocks.”
Global markets reflected similar caution. Asia-Pacific stocks ended mixed, with modest gains in Japan and South Korea, while Chinese markets dipped slightly. In Europe, defense stocks retreated, with companies like Germany’s Renk and Sweden’s Saab seeing notable declines amid concerns about continued US-China tensions over rare earth exports.
Meanwhile, US small business sentiment data is due Tuesday morning, followed by key inflation reports later in the week, which may influence Federal Reserve policy expectations. Analysts will be watching May’s consumer and producer price index data for signs of persistent inflation, with potential implications for interest rate decisions at the upcoming FOMC meeting.
Elsewhere, Paramount Global announced its second round of layoffs, trimming 3.5% of its US workforce as it contends with a challenging media landscape. The stock edged down 0.2% in premarket trading.
In currency markets, the dollar attempted a modest rebound after Monday’s dip, while yields on Japanese government bonds declined on news that Tokyo may buy back longer-term debt. Oil prices ticked higher, and gold slipped slightly as investors weighed geopolitical and economic signals.
With input from CNBC, the Wall Street Journal, and Reuters.
