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US stock futures were stuck in a holding pattern on Tuesday as renewed US-China trade talks entered their second day after an upbeat initial meeting.
Futures on the Dow Jones Industrial Average (YM=F), the S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) all wavered around the flat line.
The mood is cautious as investors keep a close eye on the trade talks, which restarted in the morning in London. While a deal on access to China’s rare earth minerals is the US priority, negotiators have to navigate contentious issues that have fueled a rift between the two trading partners.
CME – Delayed Quote USD
As of 7:13:17 AM EDT. Market Open.
ES=F NQ=F YM=F
Any signs of progress will likely be greeted with relief by markets, given switchbacks in President Trump’s tariff policy and in US-China relations have fed uncertainty about risks to economic growth worldwide. On Monday, stocks on Wall Street edged higher after White House officials suggested discussions had been productive — though Trump himself cautioned that “China’s not easy”.
Read more: The latest on Trump’s tariffs
Chinese stocks slid suddenly on Tuesday before the meeting resumed, a bout of volatility that suggested investors aren’t confident of success. “The market is too sensitive,” Fu Shifeng, investment director at Cheng Zhou Investment, told Bloomberg. “People seem to be speculating that the talks didn’t go well.”
Meanwhile, a gauge of US small-business optimism came in higher in May — the first rise since September — amid the trade truce with China. But worries about Trump’s tax-and-spending megabill stoked uncertainty about the outlook, the NFIB survey found.
investors are still counting down to the release of the May Consumer Price Index (CPI) report on Wednesday. The report will offer fresh insight into the state of inflation amid Trump’s evolving trade policy. Analysts expect to see price pressures accelerated last month.
LIVE 6 updates
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Good morning. Here’s what’s happening today.
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Trending tickers: Tesla and McDonald’s
Here are some top stocks trending on Yahoo Finance in premarket trading:
Tesla, Inc. (TSLA) stock rose 2% before the bell on Tuesday, after being hit with 2 downgrades on Monday due to the fallout from CEO Elon Musk and President Trump’s dustup. Tesla’s robotaxi test is set to take place on June 12 in Austin, Texas.
McDonald’s (MCD) shares fell over 1% in premarket trading today after analysts at Morgan Stanley downgraded the fast food company on Monday to a Hold from a Buy. Morgan Stanley also cut its price target to $324 from $329.
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Big Tech is driving bullish flows in stocks, Citi strategists say
Bloomberg reports:
US technology heavyweights have attracted a flurry of bullish bets as optimism around the economic outlook overshadows trade concerns, according to Citigroup Inc. (C) strategists.
Long positions in the technology-heavy Nasdaq 100 (^NDX) increased by more than in the S&P 500 (^GSPC) last week, the team led by Chris Montagu wrote in a note. Exposure has been mainly driven by new bullish bets, while short bets steadily declined across indexes, they said.
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Chinese stocks fall amid trade talk rumors
Chinese stocks fell on Tuesday ahead of the second day of trade negotiations between the US and China. Investors are cautious as the two biggest economies seek to resolve some contentious issues.
Bloomberg News reports:
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US stocks lose support from Asia’s ‘buy the dip’ retail traders
When President Trump set off a global stock market slump in April with his package of sweeping new tariffs, small investors across Asia rushed to the US stock market to buy the dip. Now they’re backing away, data for May shows.
Bloomberg reports:
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Apple’s WWDC touts biggest software changes in years, but lacks splashy AI reveal
Apple (AAPL) is holding its highly anticipated annual developers’ conference. Yahoo Finance’s Daniel Howley reports from Silicon Valley:
Apple on Monday announced sweeping changes to its product ecosystems, including a wide-ranging revamp of its iOS operating system for its iPhones, as well as the software that powers its iPads and Macs.
The updates, which the company debuted as part of its WWDC developer event held at its headquarters in Cupertino, Calif., mark the biggest shift in Apple’s software design in years. Still, the improvements were light on new AI capabilities at a time when Wall Street is looking for Apple to prove it can compete in the space. …
While Apple showed off a handful of new features for its Apple Intelligence platform, it’s unlikely to quell fears that the company is falling behind the likes of Microsoft and Google in the rapidly evolving space.
