U.S. Stock Futures Ease as Investors Brace for Trade Talks and Inflation Data

U.S. stock index futures edged lower on Sunday evening, reflecting investor caution ahead of critical trade negotiations between Washington and Beijing and closely watched U.S. inflation data due later this week.

Market Sentiment Wavers on Trade Talks, Civil Unrest

Futures pulled back after Friday's upbeat session, where strong nonfarm payrolls data briefly boosted sentiment. However, fresh concerns about global trade and domestic stability weighed on investor confidence.

Civil unrest in Los Angeles added a layer of uncertainty after the National Guard was deployed to control escalating protests against President Trump's immigration policies. While not yet market-moving, the unrest introduces political risk that traders cannot ignore.

Futures Slightly Lower in Early Trade

As of 23:17 GMT:

• S&P 500 Futures fell 0.1% to 5,998.75

• Nasdaq 100 Futures dropped 0.2% to 21,748.50

• Dow Jones Futures dipped 0.1% to 42,772.00

These moves follow the S&P 500's Friday close at 6,000.36, its highest level since February.

Focus Turns to U.S.-China Trade Talks in London

Markets will be watching closely as U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer meet with China's Vice Premier He Lifeng in London. This marks the latest attempt to break an impasse over tariffs, chip export controls, and rare earth supply restrictions.

The talks come shortly after President Trump and President Xi held direct discussions last week. Despite this high-level contact, U.S. officials acknowledged earlier that negotiations had stalled, particularly over sensitive tech and trade issues.

Inflation Data in Focus

Investors are also eyeing Wednesday's Consumer Price Index (CPI) report, which is expected to show a modest uptick in inflation for May, driven by higher electricity costs and the ripple effects of trade tariffs.

Key economic data, including inflation and industrial production, will be vital in shaping expectations around the Federal Reserve's interest rate path. Markets are still digesting Friday's stronger-than-expected payrolls report, which signaled labor market resilience despite trade and policy headwinds.

For real-time inflation and policy indicators, investors can monitor the Economics Calendar. To analyze how different sectors and assets react to macro news, refer to the Commodities data stream.

Apple and Tesla in Spotlight

Apple Inc. (NASDAQ:AAPL) will host its Worldwide Developers Conference (WWDC) on Monday, which could shed light on the company's strategic pivots amid a sluggish stock performance. Meanwhile, Tesla (NASDAQ:TSLA) rebounded sharply Friday, helping lift broader tech sentiment after a turbulent week for its CEO Elon Musk.