Stock futures fell Monday, the first trading day of June, as global trade tensions increased.
S&P 500 futures traded down 0.3%, and Nasdaq-100 futures were 0.5% lower.
Futures tied to the Dow Jones Industrial Average declined 101 points, or 0.2%.
On Friday, the S&P 500 closed out the month of May with a more than 6% gain, its best monthly performance since November 2023.
The tech-heavy Nasdaq Composite surged more than 9% for the month and the Dow Jones Industrial Average rose about 4%.
As tensions over global trade grew, stock futures fell on Monday, the first trading day of June.
Nasdaq-100 futures fell 0.5 percent, while SandP 500 futures fell 0.3 percent. Futures linked to the Dow Jones Industrial Average fell 0.2 percent, or 101 points.
China responded to the U.S. S. charges that it broke a short-term trade agreement. As an indication that talks between the two biggest economies in the world are deteriorating, the nation instead blamed Washington for breaking the agreement.
After a brief pause, tensions flared up again after U. A. He Lifeng, the vice premier of China, and Treasury Secretary Scott Bessent met in Geneva and decided to suspend most tariffs for 90 days.
On Sunday, Kevin Hassett, the director of the National Economic Council, proposed that President Donald Trump and Chinese President Xi Jinping speak as early as this week about trade.
tensions between the U.S. S. Following Trump’s announcement that he would double steel tariffs to 50%, the European Union also became more active. According to a spokesperson, the EU warned that this “undermines” negotiations, saying: “This decision increases costs for businesses and consumers on both sides of the Atlantic and adds further uncertainty to the global economy.”. “.”.
The S&P 500 saw its best monthly performance since November 2023 on Friday, closing out May with a gain of over 6%. The tech-dominated Nasdaq Composite jumped over 9% for the month, while the Dow Jones Industrial Average increased by roughly 4%.
Nevertheless, Chris Toomey of Morgan Stanley is dubious about whether the market’s momentum from May will last.
