U.S.-China trade talks, Apple WWDC keynote ahead - what’s moving markets
Investing.com - U.S. stock futures edge lower as traders turn their gazes towards renewed U.S.-China trade talks in London. Markets are hoping that the discussions will lead to a ratcheting down in trade tensions between the world’s two largest economies, who have been at loggerheads over issues like tariffs and export controls. Elsewhere, Apple (NASDAQ:AAPL) is set to deliver a closely-watched keynote address at its annual developers conference, while Chinese export growth slows in May.
1. Futures dip
U.S. stock futures pointed lower on Monday, with investors looking ahead to a fresh round of trade talks between the U.S. and China as well as key inflation figures later this week.
By 03:30 ET (07:30 GMT), the Dow futures contract had slipped by 46 points, or 0.1%, S&P 500 futures had fallen by 6 points, or 0.1%, and Nasdaq 100 futures had dropped by 39 points, or 0.2%.
The main averages on Wall Street ended higher on Friday, fueled by a stronger-than-anticipated U.S. labor market reading for May, and President Donald Trump’s announcement of today’s meeting between U.S. and Chinese officials in London (more below). Shares in Tesla (NASDAQ:TSLA) also rebounded from a slump that stemmed in part from a verbal and online brawl between CEO Elon Musk and Trump.
At the close of trading, the S&P 500 stood at above the 6,000 for the first time since February 21.
2. U.S.-China trade talks to be renewed
Crunch discussions between the U.S. and China at an undisclosed location in London are set to be major focus for markets on Monday.
Investors are optimistic that the world’s two largest economies will achieve a rapprochement following a period of increased trade tensions.
Both sides have been at odds over Trump’s threat of elevated tariffs and the supply of rare earth minerals from China, despite a preliminary agreement reached in Geneva last month that included a temporary pause and lowering of punishing tit-for-tat levies. Trump’s so-called "reciprocal" duties on China are now on hold until August 12.
Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick are due to represent Washington during the discussions, while Vice Premier He Lifeng will helm China’s contingent.
Last week, Trump and Chinese counterpart Xi Jinping spoke for over an hour on the phone. Trump said the conversation was mostly focused on trade and had a "very positive conclusion", although a Chinese government account noted that Xi told Trump to back away from his aggressive trade measures and avoid taking steps to support Taiwan.
3. Apple WWDC keynote address
Outside of politics, markets will be keeping tabs on Apple’s annual Worldwide Developers Conference, which is due to begin on Monday with the iPhone maker’s traditional keynote address.
The event typically pulls away the veil on some of Apple’s software updates due to be made available later this year.
Bloomberg News has reported that Apple will likely debut a new numbering regime for its operating system, shifting from a sequential series to one based on the year. Apple’s iOS 26, for example, is reportedly tipped to include major design changes, but little is currently known beyond potential improvements to the artificial intelligence-enhanced Apple Intelligence service.
Meanwhile, Apple’s promised move to bring more AI into its Siri voice assistant is likely not coming this week, after the firm said three months ago that the upgrade was taking longer than initially projected.
A perceived lack of progress on AI has partly dented sentiment around Apple, sending shares in the company down by more than 16% so far this year.
4. Chinese export data
China’s export growth decelerated to a three-month low in May as the country grappled with U.S. tariffs that weighed on shipments.
Customs data showed that China’s exports to the U.S. slipped by 34.5% versus the prior year in value terms -- the steepest decline since the outbreak of the COVID-19 pandemic roiled global trade in early 2020.
Overall exports, a key driver of the country’s massive trade surplus, still expanded in May, albeit at a slower than expected pace, while growth in exports also weakened sharply. Exports grew 4.8% year-on-year missing expectations for a 5% rise and falling from the 8.1% rise seen in the prior month.
But the country’s imports fell substantially more than expected in May, reflecting weak demand at home amid increased economic uncertainty and sluggish consumer spending. Chinese imports fell 3.4% year-over-year, compared to an expected drop of 0.9% and deepening their decline from a 0.2% fall in the prior month.
5. Oil retreats
Oil prices slipped lower Monday, but have retained most of last week’s gains as traders watched for news from the U.S.-China trade talks in London.
At 03:30 ET, Brent futures slipped 0.5% to $66.16 a barrel, and U.S. West Texas Intermediate crude futures fell 0.4% to $64.30 a barrel.
The prospect of a U.S.-China trade deal have boosted some investors’ risk appetite and supported oil prices amid hopes a deal will boost economic growth and thus demand for energy.
Brent had advanced 4%, and WTI gained over 6%, last week, their first weekly gain in three weeks.
With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Sure, there are always opportunities in the stock market – but finding them feels more difficult now than a year ago. Unsure where to invest next? One of the best ways to discover new high-potential opportunities is to look at the top performing portfolios this year. ProPicks AI offers 6 model portfolios from Investing.com which identify the best stocks for investors to buy right now. For example, ProPicks AI found 9 overlooked stocks that jumped over 25% this year alone. The new stocks that made the monthly cut could yield enormous returns in the coming years. Is AAPL one of them?
